US crude oil futures jumped above $61 a barrel on Thursday after Washington imposed sweeping sanctions on Russia’s top oil producers, Rosneft and Lukoil, triggering concerns about potential market turbulence.
The sanctions, the first direct action by President Trump’s administration targeting Moscow’s energy sector, prohibit US entities and individuals from doing business with the firms and their subsidiaries, including all dollar-based transactions.
The move is intended to curb Russian President Vladimir Putin’s ability to fund the war in Ukraine.
The measures follow similar actions by the UK, while the European Union is set to roll out its 19th sanctions package, including a ban on Russian liquefied natural gas imports.
Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory organizations, said the coordinated Western action could trigger volatility across asset classes.
“These sanctions hit the core of Russia’s economy — energy exports — and markets are responding instantly,” Green said. “When a major global supplier faces restrictions, price and supply dynamics shift overnight. We expect a period of short-term turbulence across oil, equities, and currencies as some investors reposition.”
Green added that the sanctions could complicate central banks’ efforts to reduce interest rates, as energy prices move higher and inflationary pressures revive.
From a technical perspective, Ipek Ozkardeskaya, senior analyst at Swissquote, noted that oil prices may face short-term resistance near $62–62.50 per barrel, while medium-term fundamentals remain bearish amid uncertain global demand and ample supply.
“Upcoming Fed rate cuts and a softer US dollar should help establish a floor under oil prices,” Ozkardeskaya said. “But speculative long positions are retreating, and any recovery is likely to remain short-lived, with a medium-term bias below $65.”
President Trump described the sanctions as “tremendous,” while Ukrainian President Volodymyr Zelenskyy welcomed the move, saying his country had “waited for this moment.”
Green warned that the sanctions’ global reach could reshape energy flows and trading patterns, potentially pushing Russia to deepen ties with non-Western buyers like China and India.
“Until there’s clarity on how long these restrictions will remain, investors should expect continued fluctuations across commodities, currencies, and equities,” Green said.