NEW YORK — Oil prices surged around 5% to a two-week high on Thursday after the U.S. imposed sanctions on major Russian suppliers Rosneft and Lukoil over Russia’s war in Ukraine.

Sanctions against Russia could reduce the supply of oil available to global markets as Russia was the world’s second-biggest crude producer in 2024 after the U.S., according to U.S. energy data.

Brent futures rose $2.91, or 4.7%, to $65.50 a barrel at 10:51 a.m. EDT (1451 GMT), while U.S. West Texas Intermediate (WTI) crude rose $2.89, or 4.9%, to $61.39.

That put Brent on track for its highest close since October 8 and WTI on track for its highest close since October 9.

In addition to soaring crude prices, U.S. diesel futures jumped over 5%, boosting the diesel crack spread to its highest since February 2024.

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