Oil prices surge as Trump hits Russian energy giants with sweeping new sanctions

Oil prices jumped on Thursday after the U.S. imposed sanctions on major Russian oil companies over Russia's war in Ukraine. Brent crude futures were up 5%, while West Texas Intermediate crude futures climbed more than 5.2% as of Thursday morning. The Trump administration on Wednesday moved to sanction Russia's largest oil producers, Rosneft and Lukoil, over their role in funding the Russian war in Ukraine, which has become Europe's biggest land war since World War II. "Given President Putin's refusal to end this senseless war, Treasury is sanctioning Russia's two largest oil companies that fund the Kremlin's war machine," Treasury Secretary Scott Bessent said in a statement. "We encourage our allies to join us in and adhere to these sanctions." TRUMP ADMINISTRATION HITS RUSSIA'S TOP OIL FIRMS WITH SANCTIONS TO STUNT WAR FUNDING, URGES CEASEFIRE Russian oil and gas revenue, which is down 21% year-over-year, accounts for about one-fourth of Russia's budget and is the government's most important source of cash for the war in Ukraine. However, Russia's revenue mainly comes from taxing output, rather than exports, which could lessen the immediate impact of the sanctions. Ukrainian President Volodymyr Zeleneskyy thanked the U.S. for the new sanctions and said they were "very important" — though he noted that more pressure will be needed to convince Russia to agree to a ceasefire. A spokeswoman for the Russian Foreign Ministry dismissed the impact of the oil sanctions, saying Russia has developed a "strong immunity" to sanctions. Lukoil canceled a planned board meeting related to dividends and canceled it in response to "the new circumstances."