Global crude prices surged by more than two percent on Thursday after US President Donald Trump announced plans to impose heavy sanctions on two major Russian oil companies, Rosneft and Lukoil.
The decision, which follows the collapse of a proposed summit between Trump and Russian President Vladimir Putin in Budapest, is part of renewed efforts by Washington and the European Union to pressure Moscow to end its more than three-year invasion of Ukraine.
Speaking from the Oval Office, Trump said his discussions with Putin had failed to yield progress, prompting the new sanctions. “Every time I speak with Vladimir, I have good conversations, and then they don’t go anywhere,” he told an AFP journalist. The US president added that he hoped the “tremendous sanctions” would be temporary and that “the war will be settled.”
The announcement sent both major oil benchmarks—Brent and West Texas Intermediate (WTI)—to near two-week highs, extending gains from Wednesday’s more than two percent rise.
Further boosting market sentiment were Trump’s claims that India had agreed to reduce its crude imports from Russia as part of a new US trade deal. However, New Delhi has neither confirmed nor denied any such agreement. Citing unnamed Indian refinery sources, Bloomberg reported that Russian oil shipments to India were expected to decline sharply following the sanctions.
Meanwhile, equity markets rebounded as Beijing announced plans to resume tariff negotiations with Washington. Chinese Vice Premier He Lifeng said he would hold talks with senior US officials in Malaysia from October 24 to 27, easing investor concerns over possible US restrictions on software exports to China.
