US Imposes Tough Sanctions on Russian Oil

In response to the U.S.'s latest sanctions on Russian oil producers and vessels, refiners in China and India are pivoting their oil sourcing to the Middle East, Africa, and the Americas. The sanctions, which target companies like Gazprom Neft and Surgutneftegas, are expected to significantly reduce Russian oil exports, forcing independent refiners in China to cut back production. Analysts predict that these restrictions will also drive up global oil prices and freight costs, as around 42% of Russia's seaborne crude exports are affected. Meanwhile, Iran has begun exporting oil from its Chinese stockpiles to fund militia groups in the Middle East, raising concerns about indirect funding to the Islamic Revolutionary Guard Corps. Both nations have been sourcing more oil from alternative regions due to declining supplies from Russia and Iran, with spot purchases from Abu Dhabi and Oman increasing. These shifts highlight the ongoing geopolitical tensions affecting global oil markets.