Oil prices rise nearly 4% after U.S. tightens sanctions on Russian crude sales

Oil prices on Friday rose almost 4% after the U.S. tightened sanctions against Russian crude exports, exacerbating supply concerns in an already tightly balanced energy market.

International benchmark Brent crude futures with December expiry traded 3.8% higher at $89.24 per barrel at around 11:05 a.m. London time, while front-month November U.S. West Texas Intermediate crude futures rose 3.9% to trade at $86.16 per barrel.

The move back toward $90 a barrel comes after the U.S. on Thursday imposed sanctions on two shipping companies that it said violated the G7’s oil price cap, a mechanism designed to retain Russian flows in the market while curbing the Kremlin’s war chest.

“This action underscores the Treasury Department’s commitment with its international partners to responsibly reducing Russian government oil profits and constraining the Russian war machine,” the U.S. Department of the Treasury said in a statement.

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