Oil prices surged to a four-month high following sweeping US sanctions on Russian energy exports, aiming to curtail Moscow’s revenue streams amid ongoing geopolitical tensions. The sanctions, which target key aspects of Russia’s oil industry, are part of broader measures to pressure the Kremlin over its involvement in Ukraine.
Brent crude rose 2% to settle above $90 per barrel, while West Texas Intermediate climbed to nearly $86 per barrel, marking their highest levels since mid-summer. Analysts attribute the rally to tightened supply expectations and heightened geopolitical risks, which have amplified market uncertainty.
Market participants are now bracing for potential disruptions in the global oil supply chain, as Russia plays a pivotal role in meeting worldwide demand. The sanctions’ implications are likely to extend to global inflation trends, particularly in energy-dependent economies, adding to concerns about economic stability in key markets.
While the oil market’s reaction underscores heightened volatility, experts caution that the full impact of these measures will depend on how effectively enforcement curtails Russian exports. In the short term, traders expect continued price momentum as supply constraints ripple through the market.
