Oil soars as Trump slaps sanctions on Russian energy giants

October 23, 2025 (MLN): Crude oil prices surged more than 2% on Thursday after U.S. President Donald Trump imposed sanctions against Russian energy firms Rosneft and Lukoil, intensifying geopolitical tensions and boosting commodities.

The move came as Washington and the European Union unveiled new measures to pressure Moscow to end its three-and-a-half-year invasion of Ukraine, following the collapse of planned peace talks in Budapest.

“Every time I speak with Vladimir, I have good conversations, and then they don’t go anywhere,” Trump told AFP in the Oval Office, adding that he hoped the “tremendous sanctions” would be short-lived and that “the war will be settled.”

Brent crude climbed 2.3% to $64.05 per barrel, while West Texas Intermediate (WTI) also rose 2.3% to $59.85, both hovering near two-week highs.
The gains extend Tuesday’s rally, driven by reports that India agreed to reduce Russian crude imports as part of a potential U.S. trade deal though New Delhi has not confirmed any change in policy.

Traders said the sanctions reinforced fears of tighter global supply at a time when markets are already strained by geopolitical risks and shifting trade dynamics.

Asian equities, however, failed to mirror oil’s strength. Most regional markets fell, tracking overnight losses on Wall Street as investors grew wary of a tech-led bubble and renewed U.S.-China trade tensions.

Tokyo’s Nikkei 225 slumped 1.3% to 48,664.74, while Hong Kong’s Hang Seng Index dropped 0.6% to 25,637.25, and Shanghai’s Composite fell 0.9% to 3,880.18.
Markets in Sydney, Taipei, Manila, and Jakarta also closed lower, though Singapore, Seoul, and Wellington managed slight gains.

Adding to market unease, reports surfaced that the White House is considering curbs on software-powered exports to China, including laptops and jet engines, in response to Beijing’s restrictions on rare earth minerals.

U.S. Treasury Secretary Scott Bessent said, “Everything is on the table,” when asked about possible export controls, noting any move would be coordinated with G7 allies.

Analysts said the new restrictions if implemented, could escalate trade tensions just ahead of a potential Trump-Xi meeting at next week’s APEC summit in South Korea.

“Headlines that the U.S. is considering software export curbs on China have certainly done risk no favours,” said Chris Weston of Pepperstone. “Markets may be underpricing the risk of a strong-arm response from either side.”

Gold prices edged higher, rising around 1% to $4,075 per ounce, after falling sharply in previous sessions. However, the precious metal remains well below the record high above $4,381 reached earlier in the week.

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