President Trump’s turn against Russia’s economy is ripping through oil markets. The price of Russian oil is trading at its biggest discount to Brent since 2023. Ships laden with sanctioned crude are adrift at sea. And big importers, such as China and India, are now seeking to buy crude from elsewhere.
U.S. sanctions announced last month on Russia’s largest oil producers, Lukoil and Rosneft, finally kicked in on Friday. The measures are already starting to reshape global supply lines and test Moscow’s ability to sell crude, the lifeblood of its economy.
Markets may eventually adjust, as they largely did to earlier wartime restrictions. And a Ukraine peace plan drafted by the Trump administration has raised the prospect of sanctions being lifted.
For now, though, the crackdown is reverberating through the global oil trade.
The price of Russia’s flagship oil grade is down around 17% since the U.S. sanctions were announced as international demand drops. Meanwhile, the price of Brent crude, the global yardstick, edged up.