The US Treasury Department has imposed sweeping sanctions on Russia’s oil industry, targeting companies Gazprom Neft and Surgutneftegas, over 180 tankers, and more than a dozen energy officials and executives.
Oil prices surged as the news sent shockwaves through the market, with Brent gaining $2.84 to close at $79.76 per barrel, while US crude oil advanced $2.65 to settle at $76.57 per barrel.
The sanctions aim to disrupt Russia’s key source of revenue, which is funding its war in Ukraine. “We are ratcheting up the sanctions risk associated with Russia’s oil trade,” said Treasury Secretary Janet Yellen.
Industry experts warn that this move could lead to a scramble for barrels from the Middle East as Indian and Chinese refiners try to replace Russian oil imports. The Biden administration’s decision to impose more robust energy sanctions has sent a strong message before President-elect Donald Trump takes office.
Source: https://www.cnbc.com/2025/01/10/oil-jumps-more-than-4percent-brent-breaks-80-as-traders-worry-about-tougher-russia-sanctions.html