Oil prices jumped about 3% on Wednesday evening after the Trump administration imposed further sanctions on Russia’s two largest crude companies, citing Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.”
Global benchmark Brent rose $1.83, 2.92%, to $64.42 per barrel by 8:18 p.m. ET. U.S crude oil rose $1.74, or 2.97%, to $60.24 per barrel. During regular trading Wednesday, Brent gained 2% to close at $62.59 a barrel, while U.S. crude climbed 2.2% to settle at $58.50.
“Now is the time to stop the killing and for an immediate ceasefire,” Treasury Secretary Scott Bessent said as he announced the sanctions on Rosneft and Lukoil.
“Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war,” Bessent said. “We encourage our allies to join us in and adhere to these sanctions.”
The Treasury Department said the new sanctions will harm the Kremlin’s ability to raise revenue to fund its war against Ukraine.
A senior White House official told NBC News that the new sanctions are related to plans for a meeting between President Donald Trump and Russian leader Vladimir Putin in Budapest falling through.
Trump has also been trying to pressure India to stop purchasing Russian oil. New Delhi is one of the biggest purchasers of Russian crude exports.
U.S. crude oil prices have fallen 16% this year and Brent is down nearly 14%. OPEC+, led by Saudi Arabia and Russia, has been increasing production for months.
Trade tensions caused by Trump’s tariffs, meanwhile, have also raised worries in the oil market that economic growth will slow and hurt crude demand.
A general view shows the oil refinery of the Lukoil company in Volgograd, Russia on April 22, 2022.
Reuters Photographer | Reuters