Global oil prices spiked on Thursday after U.S. President Donald Trump announced sweeping sanctions against two major Russian energy companies, Rosneft and Lukoil, in a move aimed at pressuring Moscow over its ongoing war in Ukraine.
Both Brent crude and West Texas Intermediate (WTI) jumped more than three percent, extending Wednesday’s rally, after Trump said peace efforts with Russian President Vladimir Putin had stalled.
“Every time I speak with Vladimir, I have good conversations, and then they don’t go anywhere,” Trump said during a press briefing at the Oval Office.
He added that the “tremendous sanctions” would remain in place “until the war is settled.”
The European Union also announced a fresh round of penalties targeting Russian interests as part of coordinated Western efforts to force an end to the three-and-a-half-year invasion of Ukraine.
Trump’s decision came after a planned summit with Putin in Budapest collapsed earlier this week.
Oil prices were further buoyed by Trump’s claim that India had agreed to reduce its imports of Russian crude as part of a broader U.S. trade deal — a claim New Delhi has yet to confirm.
Citing refinery sources, Bloomberg reported that Indian imports of Russian oil could fall sharply to near zero due to the sanctions.
Meanwhile, equity markets rebounded as Beijing announced it would hold tariff talks with Washington beginning Friday, easing concerns over a potential escalation of trade tensions following reports of possible U.S. restrictions on software exports to China.
Chinese Vice Premier He Lifeng confirmed that discussions with top U.S. officials would take place in Malaysia from October 24–27, ahead of a likely meeting between Trump and Chinese President Xi Jinping at next week’s APEC Summit in South Korea.
U.S. Treasury Secretary Scott Bessent told Bloomberg that possible export controls on software and technology would be coordinated “with our G7 allies,” but insisted that “everything is on the table.”
Analysts said the renewed dialogue eased market jitters.
“The ingrained belief remains that Trump’s threat of 100 percent tariffs on China is unlikely to take effect or, if they do, they’ll be rolled back soon enough,” said Chris Weston of Pepperstone Group.
In Asia, Hong Kong gained one percent, while Shanghai, Sydney, Singapore, Wellington, Manila, and Mumbai all posted modest gains. However, Tokyo, Seoul, Taipei, and Jakarta closed lower.
European markets opened higher, with London, Frankfurt, and Paris all in positive territory.
Gold prices also rebounded nearly two percent to $4,110 per ounce, recovering from earlier losses, though still below the record high of $4,381 set earlier in the week.
Key figures (as of 07:15 GMT):
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Tokyo (Nikkei 225): ↓ 1.4% at 48,641.61
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Hong Kong (Hang Seng): ↑ 1.0% at 26,039.82
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Shanghai Composite: ↑ 0.2% at 3,922.41
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London (FTSE 100): ↑ 0.3% at 9,545.05
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Brent Crude: ↑ 3.2% at $64.58 per barrel
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WTI: ↑ 3.3% at $60.44 per barrel
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Gold: ↑ 1.9% at $4,110
Currencies:
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Euro/Dollar: $1.1594
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Pound/Dollar: $1.3350
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Dollar/Yen: ¥152.58
