Oil prices jumped more than 5% Thursday after the Trump administration imposed new sanctions on Russia’s two largest oil companies, Rosneft and Lukoil. The US Treasury said the move was in response to Moscow’s “lack of serious commitment” to ending the war in Ukraine.

Brent crude rose $3.15, or 5.03%, to $65.74 per barrel, while US crude gained $3.13, or 5.35%, to $61.63. Treasury Secretary Scott Bessent called for an immediate ceasefire and warned further action could follow to support Donald President Trump’s diplomatic efforts.

Analysts said the sanctions target Russia’s revenue from energy exports and signal a tougher US stance. The announcement also comes amid rising global oil production and weaker demand, adding volatility to already uncertain energy markets. The move puts pressure on India, a major Russian oil buyer, to curb purchases.