10/1/2025–|Last updated: 10/1/202509:19 PM (Mecca time)
The price of crude oil exceeded $80 per barrel in trading today, Friday, as the United States tightened sanctions on Russia in an attempt to obstruct the flows of its oil and prevent its sale as part of punishing Moscow for its continued war against Ukraine.
Oil prices are heading for gains for the third week in a row, with traders focusing on potential supply disruptions with the imposition of new sanctions on Russia.
Brent crude futures rose as much as 5% to trade at their highest levels since early October before paring their gains. West Texas Intermediate crude rose above $75.
The comprehensive sanctions target two companies that handle more than a quarter of Russia’s seaborne oil exports, as well as vital insurance companies and a huge fleet of tankers.
While the market was anticipating additional sanctions on Russia, the potential scope of the restrictions was not clear, and targeting a large number of tankers threatens to significantly restrict Russia’s ability to access ships.
Traders were also preparing to impose tougher sanctions on Iranian oil, which would support crude prices at a time when US oil inventories are declining.
In increasingly bullish market conditions, “nobody wants to sell here,” said Dennis Kessler, senior vice president of trading at the Bank of Korea Securities.
Earlier today, the US State Department announced the imposition of “the most severe” sanctions on Russia’s oil and gas sectors, which “will cost it billions of dollars per month,” according to an American official.
The US State Department added that the sanctions will include 8 people and entities in Russia linked to the means of producing and exporting oil and gas. It also aims to deprive Russia of oil and gas resources to undermine its ability to finance its war against Ukraine.
Shadow fleet
For its part, Reuters reported that the United States imposed sanctions on more than 180 oil tankers, many of which are part of what is known as the “Russian shadow fleet,” which is believed to consist of old and unsafe tankers used to secretly transport oil and goods to circumvent Western sanctions on Moscow.
In this context, an American official said that Russia “will do its best to circumvent the sanctions, but doing so will accrue costs to it.” The official expected that the new sanctions on Russia would cost billions of dollars per month.
For its part, the Russian state company Gazprom denounced the American measures, describing them as unjustified and illegal.
Since February 24, 2022, Russia has launched a military attack on its neighbor Ukraine, conditioning its end on Kiev’s abandonment of joining Western military entities, which Ukraine considers interference in its affairs.
