US sanctions Rosneft and Lukoil push oil higher, shake Asian markets

The United States announced broad new sanctions on Russia's two largest oil producers, Rosneft and Lukoil, on Thursday, sending crude prices sharply higher and prompting mostly lower trading across Asian equity markets. The measures, announced by President Donald Trump, aim to increase pressure on Moscow over its actions in Ukraine and immediately tightened an already volatile global market environment.

U.S. benchmark West Texas Intermediate crude rose more than 2 percent, trading near $61 a barrel, while Brent crude climbed to about $65 a barrel after the announcement. Officials said the sanctions restrict transactions with Rosneft and Lukoil and include warnings that foreign banks and companies could face secondary penalties if they continue business with the targeted firms. Market participants said the moves risk further tightening supply flows and could mark a stepped-up effort by Western governments to limit Russian oil revenues.

The sanctions contributed to risk aversion across equities, with Asian markets largely following a retreat on Wall Street. Tokyo's Nikkei 225 fell roughly 1.3 percent, the Shanghai Composite lost about 0.7 percent and South Korea's Kospi slipped...