Global Markets React to U.S. Sanctions on Russian Oil Giants

Oil prices surged nearly 4% after the TRUMP administration imposed sweeping sanctions on Russia's top oil producers, Rosneft and Lukoil. The U.S. Treasury cited Moscow's failure to commit to peace in Ukraine as the primary catalyst. Brent crude climbed to $65 per barrel, while U.S. benchmark oil hovered around $61.

The sanctions mark Washington's most aggressive move yet against Russia's energy sector, signaling a sharp policy shift. Analysts warn of disrupted Russian oil exports, which account for half the country's crude shipments. With oil and gas taxes funding a quarter of Russia's federal budget, the Kremlin's war financing capacity may weaken—but Ripple effects will reverberate through global energy markets.

India and China, Russia's largest oil buyers, now face acute supply challenges. Together they import over 3.5 million barrels daily from Moscow. India's state-run refiners—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—are particularly exposed. Rosneft's 50% stake in India's Nayara Energy refinery further complicates supply chain dynamics.