Oil prices continued to climb on Monday driven by renewed supply concerns after the US administration intensified sanctions targeting Russia's oil production and exports, alongside similar measures from the UK and Japan.
The international benchmark Brent crude rose by 1.6%, reaching at $80.45 per barrel at 10.31 a.m. local time (0731 GMT), up from $79.16 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) increased by 1.6%, rising to $76.98 per barrel, compared to its prior session close of $75.79.
Both benchmarks surged in response to US sanctions on Russian oil producers and exporters, amplifying concerns over global supply. As a result, oil prices hit their highest level since October 2024.
On Friday, the US Department of the Treasury announced a series of comprehensive measures to uphold the G7 commitment to reduce Russia's energy revenues, including adding Gazprom Neft and Surgutneftegas, two of Russia's largest oil producers and exporters, along with their affiliates, to the sanctions list.
The statement also revealed that more than 30 Russian oil field service providers were added to the sanctions list, along with several high-ranking Russian energy officials and executives, including top managers of Russian oil producers.
Moreover, it was reported that the UK also imposed sanctions on Gazprom Neft and Surgutneftegas.
US Secretary of the Treasury Janet Yellen emphasized that these sanctions are aimed at countering Russia's largest source of revenue, which is used to finance its 'brutal and illegal' war against Ukraine.
Meanwhile, according to the US Department of State, around 80 entities and individuals active in liquefied natural gas (LNG) production and export activities were also sanctioned under the latest measures against Russia.
In response, the Russian Foreign Ministry vowed to retaliate against the US decision, stating that Washington's 'hostile actions' would not go unanswered.
'The new sanctions are an attempt to harm the Russian economy and at the same time threaten to destabilize global markets,' the Russian Foreign Ministry said in a statement, Sputnik news agency reported.
In addition, Japan imposed sanctions on 11 individuals, 29 organizations, and three banks from Russia in response to the ongoing Russia-Ukraine war.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr