Oil Prices Surge as US Sanctions Target Russian Energy Giants

By Staff, Agencies

Oil prices rose sharply on Thursday after Washington imposed new sanctions on Russian energy majors Rosneft and Lukoil, triggering concerns over global supply disruptions.

Global benchmark Brent crude climbed more than 5% to $65.99 per barrel, while US West Texas Intermediate (WTI) increased 5.6% to $61.79.

Although both benchmarks edged lower in early trading Friday, they remained on track for a weekly gain of around 7% — the steepest since early June.

The White House described the sanctions as part of efforts to “encourage Moscow to agree to a ceasefire.”

Russia reiterated its openness to diplomacy but said any peace talks must address the conflict’s underlying causes, accusing Kiev and Western allies of undermining negotiations through economic pressure.

Trade sources cited by media outlets said the measures prompted Chinese state oil firms to pause short-term Russian seaborne crude purchases.

Analysts also warned that refiners in India — the largest buyer of Russian crude — and Türkiye, the third largest, may scale back imports in the coming weeks.

“Flows to India are at risk in particular,” said Janiv Shah, vice president of oil markets analysis at Rystad Energy, adding that Chinese refiners were better positioned due to diversified sources and strong reserves.

Richard Bronze, head of geopolitics at Energy Aspects, told The Wall Street Journal that the move could send shockwaves through energy markets, predicting Brent could approach $70 per barrel in the coming days.