U.S. Sanctions on Rosneft and Lukoil Push Oil Prices Higher

The U.S. has rolled out fresh sanctions against Russia’s major oil players — Rosneft and Lukoil — and the move has sent ripples through global energy markets as crude prices climbed once again.

Rising Prices in a Tightening Market

On Thursday, futures for Brent crude oil rose about $1.76 a barrel (2.81 %) to reach roughly $64.35 by 00:41 GMT. West Texas Intermediate (WTI) futures also climbed by $1.68 (2.87 %) to about $60.18.
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These gains stem from the U.S. sanctioning two of Russia’s largest oil producers amid its war in Ukraine.
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Why the Sanctions Matter

The sanctions reflect a sharper stance by the U.S. against Moscow, targeting companies that play significant roles in funding the Kremlin’s war efforts. As U.S. Treasury Secretary Scott Bessent put it: “Given [Russian president] Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine.”
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Britain had already imposed sanctions on Rosneft and Lukoil the prior week. Meanwhile, the European Union approved yet another package of measures against Russia, now including a ban on imports of Russian LNG.
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Market Reaction and Nuances

Despite the clear headline impact of the sanctions, some market watchers note that the price jump has been moderate so far. For example, analyst Tony Sycamore of IG highlighted the following factors:

Previous sanction or tariff threats have often been diluted or delayed, making enforcement and immediate supply disruption less certain.
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The practical difficulties of enforcing sanctions, especially in global oil markets, limit how fast and how deeply supply can be affected.
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Still, the announcement triggered an initial spike of more than $2 per barrel as futures reacted to both the sanction news and signs of rising U.S. energy demand.
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Broader Strategic Implications

The U.S. has also urged its allies—particularly in Asia—to phase out Russian energy imports, referencing upcoming diplomatic engagements and regional energy strategies. Japan, a major LNG importer, has been specifically called upon to halt its energy imports from Russia ahead of a U.S. trip to the region.
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Such moves underscore the geopolitics that are woven deeply into today’s energy markets: sanctions, supply risk, regional dependencies, and shifting alliances.

What to Watch Going Forward

Enforcement and scope: Whether the sanctions expand or tighten further—and how strictly they are enforced—could determine the ultimate impact on Russian oil flows and global supply.

Supply response: How other oil-producing nations adjust to fill any gap (or don’t) will shape price dynamics.

Demand factors: Global and U.S. demand trends remain vital; a strong demand backdrop amplifies supply disruptions.