Crude oil prices rose as the United States imposed sweeping sanctions on the Russian oil industry

Oil prices rose on Friday after the US Treasury Department announced broad sanctions on the Russian oil industry.

Brent rose $2.44, or 3.17%, to $79.36 per barrel by 1:33 p.m. EST, while US crude oil It rose $2.29, or 3.1%, to $76.21 per barrel. Brent crude broke $80 a barrel for the first time since October earlier in the day, reaching a session high of $80.75.

The sanctions target Russian oil companies Gazprom Neft and Surgutneftegas and their subsidiaries, more than 180 oil tankers, and more than a dozen Russian energy officials and executives. Among the sanctioned executives is Gazprom Neft CEO Alexander Valerievich Dyukov.

The sanctioned ships are mostly oil tankers that are part of Russia’s “shadow fleet” that has evaded existing sanctions on the country’s energy exports, according to the Treasury Department.

“The United States is taking comprehensive action against Russia’s main source of revenue to fund its brutal and illegal war against Ukraine,” Treasury Secretary Janet Yellen said in a statement.

“With today’s actions, we increase the risks of sanctions associated with Russian oil trade, including shipping and financial facilities to support Russian oil exports,” Yellen said.

The perception in the oil market is that Indian and Chinese refiners that have imported Russian oil will have to scramble to get barrels from the Middle East, Bob Yawger, executive director of energy futures at Mizuho Securities, said in a note to clients on Friday.

The Biden administration sought to intensify pressure on Russia and distribute aid to Ukraine before the election of the president-elect Donald Trump He takes office.

“The Biden administration has chosen to impose tougher energy sanctions, which has made the oil market particularly complacent about the risks of sanctions,” said Bob McNally, president of Rapidan Energy Group.

“Therefore, we expect today’s material risk premium on Brent to adhere to pending signals from the Trump team on whether they will continue with these sanctions,” McNally said.