Trump’s Russia Sanctions Just Sent Oil Prices Soaring

Oil markets just ripped higher after a new wave of U.S. sanctions on Russia’s two largest oil producers — Rosneft and Lukoil — ordered by President Donald Trump.

West Texas Intermediate (WTI) crude futures surged over 5%, jumping above $61 per barrel, reversing from Monday’s low of $56 — the weakest level since April 2025.

The U.S. Treasury announced sweeping measures freezing all American assets tied to Rosneft and Lukoil, effectively blocking U.S. firms from doing business with them. Treasury Secretary Scott Bessent said the sanctions aim to pressure Moscow into agreeing to a ceasefire in Ukraine, calling Russia’s oil revenues “the engine of the Kremlin’s war machine.”

The sanctions don’t stop there — they also include secondary penalties for foreign financial institutions doing major business with Russia’s energy or military-industrial sectors, potentially cutting off global funding to the country’s oil infrastructure.

The result? Oil prices spiked sharply, reigniting volatility across energy markets. The Energy Select Sector SPDR Fund (NYSE: XLE) climbed 1.6% premarket, with 21 of its 22 holdings in the green.

Top gainers included APA Corp. (+4.2%), Occidental Petroleum (+3.1%), ConocoPhillips (+2.5%), and Diamondback Energy (+2.6%).

Analysts say the sudden shock has “reintroduced geopolitics” into oil pricing just as inventories were rising and demand was softening — meaning volatility could stay high in the coming weeks.