October 23, 2025 — Oil prices surged nearly 3% in early Asian trading on Thursday after the United States imposed new sanctions on Russia’s two biggest oil companies, Rosneft and Lukoil, escalating tensions in global energy markets.
At around 00:30 GMT, U.S. West Texas Intermediate (WTI) crude futures rose 2.89% to $60.19 per barrel, while Brent crude climbed 2.86% to $64.38 per barrel.
The sanctions, announced Wednesday, target the companies for “funding the Kremlin’s war machine,” according to a statement from Washington. The move marks one of the most significant U.S. actions yet against Russia’s energy sector since the conflict between Russia and Ukraine began in February 2022.
U.S. President Donald Trump said the measures were intended to pressure Moscow to end the war, which has strained global energy supply chains and driven volatility in oil markets for over three years.
Analysts noted that the sanctions could further tighten crude supplies, especially if they hinder Russian exports to Asia and Europe. “This development adds a fresh layer of geopolitical risk to oil markets,” said one commodities strategist. “If enforcement is strict, we could see prices testing higher resistance levels in the short term.”
