Oil Prices Surge Amid New U.S. Sanctions on Russia

Oil prices jumped by 5% after the U.S. sanctioned Russian companies over the Ukraine conflict. The sanctions targeted major suppliers Rosneft and Lukoil, sparking market responses that included rising energy shares and stock index gains. Meanwhile, geopolitical tensions increased investor interest in safe-haven assets like gold.

Oil prices surged by approximately 5% on Thursday following the U.S. government's imposition of sanctions on major Russian companies due to the ongoing conflict in Ukraine. This announcement created a ripple effect that saw a rise in major stock indexes, particularly driven by gains in energy shares across the U.S. and Europe.

The sanctions specifically targeted key Russian suppliers, Rosneft and Lukoil, with the U.S. indicating its readiness to take further measures. Wall Street indexes responded positively, with energy stocks leading the S&P 500's sector gains. Despite some lackluster earnings reports, such as International Business Machines seeing a slowdown in its cloud software segment, the energy sector's performance was a bright spot. Meanwhile, shares of Tesla dipped due to a continued streak of profit misses.

Beyond the U.S. market, the sanctions news impacted global indices with European markets rising and Chinese stocks rebounding from earlier losses. Concurrently, U.S. Treasury yields increased, and gold saw renewed demand. Investors remain confident of the Federal Reserve's interest rate strategies despite the geopolitical tensions.

(With inputs from agencies.)