Oil prices are posting a jump of nearly 3% on the early Asian trading sessions against the backdrop of new Trump sanctions targeting Russian conglomerates Rosneft and Lukoil.
At 03:45 this morning, the price of North American WTI crude oil went up by 2.87% to $60.18 per barrel, while that of North Sea Brent crude (imported by Cyprus) rose by 2.81% to $64.35.
The U.S. Treasury Department had announced the sanctions last night, citing Russia's "lack of serious commitment" to "a peace process to end the war in Ukraine."
Treasury Secretary Scott Bessent, moreover, urged U.S. allies "to unite with us and adopt these sanctions."
Russia is the third largest crude producer in the world, behind the U.S. and Saudi Arabia. It accounted for approximately 11% of global oil production last year.
The sanctions against the oil giants were announced as Washington intensifies pressure on European countries, as well as on India and Japan—major hydrocarbon importers—to stop purchasing energy from Russia, arguing that proceeds from the sales are financing Putin's war on Ukraine.