Oil Hits Five-Month High As U.S. Sanctions Disrupt Russian Supply

Oil prices surged to their highest level in five months as sweeping US sanctions against Russia’s energy industry threatened to curtail global supply, Bloomberg News reported.

Brent crude climbed to nearly as high as $81 a barrel.

Brent crude climbed to nearly $81 a barrel, driven by a 4% surge following the announcement of sanctions targeting major Russian oil exporters, insurance firms, and more than 150 tankers.

The measures, imposed just before US President-elect Donald Trump’s inauguration, have thrown India and China into the spotlight, as both nations heavily depend on Russian crude.

Morgan Stanley analysts noted the sanctions exceeded expectations, creating "downside risks to oil supply, at least for a period."

In Shandong, China, independent refiners held emergency meetings to assess whether they could still receive en-route shipments affected by the new penalties. Meanwhile, Indian refinery officials braced for potential supply disruptions lasting up to six months.