Oil prices jumped sharply, lifting global energy markets and driving the FTSE 100 to a record high, after US President Donald Trump announced sweeping sanctions on Russia’s two largest oil producers, Rosneft and Lukoil.
Brent crude surged 5.7% to $66.13 a barrel following the announcement, as Washington intensified pressure on Moscow to end the war in Ukraine. The rise in oil prices boosted shares in Shell and BP by around 3%, pushing the FTSE 100 to an all-time high of 9,594.82.
The sanctions freeze all Russian-owned energy assets in the United States and prohibit American entities from conducting business with Rosneft or Lukoil. The US also warned foreign banks that they could face secondary sanctions if they continue facilitating Russian oil sales, particularly in China, India, and Turkey.
Early signs indicate the pressure is working. Major Chinese refiners, including PetroChina, Sinopec, CNOOC, and Zhenhua Oil, have temporarily suspended Russian oil purchases. In India, Reliance Industries is preparing to scale back or halt imports of Russian crude amid growing fears of US penalties.
Trump described the sanctions as “tremendous,” emphasizing they were designed to push Russia toward peace negotiations. “We hope these won’t be on for long. We hope the war will be settled,” he said, expressing optimism that both Vladimir Putin and Volodymyr Zelenskyy would “become reasonable.”
The European Union followed suit with new restrictions, including a ban on Russian liquefied natural gas imports and sanctions on several Chinese refineries linked to Russian crude trade. Analysts say these measures mark one of the most significant escalations of economic pressure on Moscow since the start of the conflict.
Energy experts warned that the sanctions could lead to major disruptions in Russian oil exports, potentially pushing global crude prices even higher in the weeks ahead.
