Brent Rises as Fresh U.S. Sanctions Choke Russian Oil Exports

Brent crude surged more than 5% to about $65.87 per barrel, while WTI climbed 5.7% to $61.82, after Washington imposed new sanctions on Russia’s two largest oil firms, Rosneft and Lukoil. The measures freeze U.S.-based assets and prohibit American entities from engaging with either company, while threatening secondary sanctions on banks and shippers that continue to facilitate Russian crude flows.

The latest round of penalties, designed to cut the Kremlin’s energy revenue, immediately rattled global markets. Traders priced in tighter supply as fears grew that a portion of Russia’s seaborne crude, roughly 4.5 million barrels per day, could face transport or insurance complications.

The European Union added pressure by confirming a ban on Russian LNG imports from 2027 and restricting transactions with Rosneft and Gazpromneft. Together, the U.S. and EU moves reinforced expectations of long-term disruption in energy trade, with some analysts estimating Brent could test the $70 level if freight and insurance bottlenecks persist.

India, now Russia’s biggest buyer of discounted crude at about 1.7 million barrels per day, may scale back purchases to avoid secondary sanctions.

What Does This Mean for Me?

While Russia remains one of the world’s top oil exporters, sanctions are gradually fracturing its ability to reach Western-linked channels where better sales margins exist. Each new layer of restriction effectively strands more barrels, tightening the pool of tradable supply and inflating the geopolitical risk premium now baked into every barrel of Brent.