Global oil prices surged sharply on Thursday after the United States imposed fresh sanctions targeting Russia’s major oil companies, a move aimed at pressuring Moscow to end its war in Ukraine.
Brent crude jumped by nearly five percent, while West Texas Intermediate climbed over five percent, marking one of the biggest one-day spikes in recent months. The sharp rise followed President Donald Trump’s announcement of sweeping sanctions against Rosneft and Lukoil — Russia’s two largest oil giants — citing a breakdown in peace talks with Vladimir Putin.
The European Union also joined the United States in tightening restrictions, signaling a unified front to choke off Moscow’s energy revenues. Energy analysts believe the sanctions could disrupt more than half of Russia’s oil production and alter the global supply balance. Arne Lohmann Rasmussen of Global Risk Management noted that the new measures “will have a tangible impact on oil flows and market stability.”
Experts at Capital Economics warned that the sanctions could push the global oil market into deficit next year if fully enforced. Still, Russia’s foreign ministry downplayed the move, saying the nation had developed “strong immunity” against Western sanctions and accused Washington of sabotaging peace efforts.
Trump, who had resisted additional sanctions for months, reportedly lost patience after a planned summit with Putin in Budapest collapsed. He claimed that India had agreed to curb Russian oil purchases under a recent trade agreement, though Indian officials have yet to confirm this.
Bloomberg reported that Indian refiners expect Russian crude imports to drop significantly, possibly to zero, as the new restrictions take effect. Analysts say such a cutback would severely limit Moscow’s ability to fund its ongoing war efforts.
Meanwhile, global markets reacted with mixed signals. European stocks rallied slightly, while Wall Street opened higher amid renewed US-China trade talks. Gold prices rebounded more than one percent to $4,100 an ounce after recent declines, as investors sought safety amid rising geopolitical tension.
In Moscow, a visibly defiant Putin called the sanctions “serious but not devastating,” insisting they would not cripple Russia’s economy. He criticized Washington for escalating hostilities, saying the decision “does not strengthen US-Russia relations, which had just begun to recover.”
Despite the growing rift, Putin maintained that dialogue with the West remains possible — but warned that any direct military strike on Russia would trigger an “overwhelming” response.
