On Thursday, October 23, 2025, oil prices surged by more than 4%, building on previous gains after the United States imposed sanctions on major Russian oil suppliers, Rosneft and Lukoil, due to the ongoing war in Ukraine. At 0841 GMT, Brent crude futures rose by $2.71, or 4.3%, reaching $65.30 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $2.56, or 4.4%, climbing to $61.06.
The price hike followed the announcement of U.S. sanctions, which prompted refineries in China and India to seek alternative suppliers to avoid exclusion from the Western banking system. The U.S. also indicated its readiness to take further actions if Moscow does not agree to an immediate ceasefire.
Britain had already sanctioned Rosneft and Lukoil the previous week. Meanwhile, European Union countries approved a 19th package of sanctions against Russia, which includes a ban on liquefied natural gas imports. Following the sanctions, Brent and WTI futures initially jumped by over $2 a barrel, further supported by a surprise decline in U.S. stockpiles.
However, analysts remain cautious about the long-term effects of these sanctions, particularly regarding India’s potential response and whether Russia can secure alternative buyers for its oil. Reports indicated that Indian refiners, including Reliance Industries, might significantly reduce or stop importing Russian crude altogether. Despite the sanctions, skepticism persists in the market about their ability to fundamentally alter supply and demand dynamics, as previous sanctions have had limited impact on Russia’s oil production and revenues.