Oil prices rose sharply after the United States blacklisted Russia’s two largest oil producers, Rosneft PJSC and Lukoil PJSC, in a renewed effort by the Trump administration to pressure President Vladimir Putin over the war in Ukraine, Bloomberg reported.

West Texas Intermediate (WTI) crude climbed as much as 2.5 percent, approaching 60 US dollars a barrel, while Brent crude settled near 63 US dollars. The sanctions mark a policy reversal for President Donald Trump, who had recently indicated he would meet Putin in the coming weeks but later dismissed the need for negotiations.

The US Treasury Department said the sanctions target companies central to Russia’s oil sector, which contributes about 25 percent of federal budget revenues. Rosneft, a state-controlled company led by Putin ally Igor Sechin, and privately held Lukoil together account for almost half of Russia’s crude exports, roughly 2.2 million barrels a day in the first half of 2025, according to Bloomberg estimates.

Oil has recovered from a five-month low reached earlier in the week, aided by declining US crude inventories and signs that the recent selloff may have been overdone. Futures remain on track for a third consecutive monthly loss amid a persistent global supply surplus.

In parallel, European Union member states agreed on a new sanctions package targeting 45 entities that have assisted Russia in evading restrictions, including 12 companies based in China and Hong Kong, according to Denmark, which currently holds the EU’s rotating presidency.