BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) shares rose 3% and 2% respectively on Thursday after Washington unveiled sweeping new sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, boosting crude prices.
The measures mark a sharp shift in US policy as President Donald Trump seeks to pressure Moscow into peace talks over Ukraine.
The move came a day after Trump indefinitely shelved a planned meeting with Vladimir Putin in Budapest, saying he was “tired of good conversations that go nowhere.”
While analysts expect the economic hit to Russia to be limited, the sanctions are symbolically significant: Rosneft and Lukoil together export more than 3 million barrels a day, funding what US officials called the Kremlin’s “war machine.”
Trump said the sanctions were “tremendous” and could be lifted if Russia agreed to stop the war. Treasury Secretary Scott Bessent said they were necessary due to “Putin’s refusal to end this senseless conflict.”
The UK introduced similar restrictions last week, with Chancellor Rachel Reeves declaring there was “no place for Russian oil on global markets.” Energy stocks climbed as traders bet on a tighter global supply.
Crude oil futures for December deliveries were up 3.4% at $60.46.