Prices for oil jump as US sanctions put squeeze on Moscow

Oil prices rose sharply on Thursday after President Donald Trump announced sanctions on Russia's two largest oil companies as his frustration with President Vladimir Putin over the war in Ukraine mounted.

- STANLEY REED

Brent crude, the international benchmark, rose about 5.5% to $66 a barrel. European natural gas prices also rose more than 3% as the European Union approved its own sanctions on Russia, which includes a ban on imports of Russian liquefied natural gas from 2027.

Richard Bronze, head of geopolitics at Energy Aspects, a research firm, said Trump’s actions would have both a symbolic and a real impact on a market that has become accustomed to the Trump administration avoiding moves against Russia.

“Just the decision to make this announcement is going to send quite a shock wave through the market,” Mr Bronze said. “It feels like the president has finally reached the point where he recognises that Putin is not going to make concessions or engage in meaningful diplomacy without facing significant pressure first.”

Although Russia's natural gas flows have been crimped, Moscow has been able to maintain oil exports through sales, often at discounted prices, to countries such as India and China. The question, analysts say, is whether Trump has the appetite to squeeze Russia further.