The US has imposed sanctions on two Russian oil giants, causing international oil prices to soar.

Notice that, after the US government announced sanctions on Russia's large oil producers, oil prices surged significantly. This is the latest move by the Trump administration to pressure President Putin to negotiate an end to the war in Ukraine. West Texas Intermediate crude oil prices rose by 2.5% to nearly $60 per barrel, while Brent crude oil settled around $63 per barrel on Wednesday. The US Treasury Department has blacklisted the state-owned Russian oil giant Rosneft PJSC and Lukoil PJSC, marking a reversal in President Trump's stance. He had previously announced plans to meet with Putin in the coming weeks and had expressed belief that Russia wants to end the war, but on Tuesday he changed course by saying he does not want the meeting to be fruitless. Oil prices have rebounded from a five-month low touched on Monday, as signs of recent overselling and a decrease in US crude inventories help alleviate concerns about oversupply. However, signs of global oversupply continue to pressure prices downward, with futures prices potentially falling for a third consecutive month. On Tuesday, the US President stated that Indian Prime Minister Modi assured him over the phone that India will gradually reduce its purchase of oil from Moscow. These Asian countries are the largest consumers of Russian crude oil. EU countries have also reached a consensus on new sanctions against Russia, which are expected to be approved on Thursday morning. Denmark, serving as the rotating EU presidency, stated in a declaration that the measures will target 45 entities aiding Russia in evading sanctions, including 12 companies in mainland China and Hong Kong. It is estimated that the state-owned Russian oil company led by Putin's close ally Eagle Rise Electric & ElectronicsXie Qin and the private Lukoil are Russia's two largest oil producers, accounting for nearly half of Russia's total crude oil exports. In the first half of this year, their combined daily export volume was around 2.2 million barrels. Tax revenues from the oil and gas industry contribute approximately a quarter of the Russian federal budget.