Oil touches $80 per barrel, as heavy sanctions are imposed on Russian oil markets.

Oil prices rose to a three-month high last Friday, and traders are reeling. A new clear sanction Against Russia as the Biden administration tries to cut off Moscow from crude revenue in the ongoing war in Ukraine.

West Texas Intermediate crude (CL=F) rose more than 3.5% to settle at $76.57 a barrel, while Brent crude futures (BZ=F), the international benchmark, briefly hit $80 before settling at $79.76, its highest level since October. .

More than 180 ships, two oil companies, traders, insurers and top Russian executives have been named in the sanctions.

“Russia is cracking down on a major source of revenue for the U.S. financing its brutal and illegal war against Ukraine.” he said. In the statement.

Oil prices have been on the rise since late December, as traders remain uncertain about President-elect Donald Trump’s policy toward Iran. Tehran currently produces more than 3 million barrels of crude oil per day.

“News continues to filter (the Trump administration’s tough stance on Iran may come quickly),” BOK Financial senior vice president Dennis Kiesler said in a note to clients on Friday.

“Add in declining storage numbers due to cooler temperatures in much of the United States, and crude is now the new ‘fund favorite,'” he added.

Analysts at JPMorgan said global oil demand was expected to remain strong through January, with colder-than-expected weather in the Northern Hemisphere “boosting heating fuel consumption” and early travel in China for the country’s Lunar New Year holiday.

Despite Friday’s sharp increase, many analysts expect oil prices to fall less this year than in 2024.

Despite ongoing geopolitical conflicts, a combination of bearish factors could drive oil prices structurally lower by 2025. In the year Takeover by 2024,” Eurasia Group wrote in a note on Thursday.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X @ines_ferre.

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