Trump Considers New Sanctions on Russia’s Oil Fleet Amid Ongoing Conflict

Oil prices are experiencing volatility as the market reacts to the potential for new sanctions targeting Russia’s oil exports. President Donald Trump is reportedly considering sanctions on Russia’s “shadow fleet” of oil tankers unless Moscow commits to a peace agreement with Ukraine by Friday. This latest threat adds to the ongoing uncertainty surrounding global oil markets, which have already been impacted by a series of sanctions aimed at Russia.

Despite previous threats, the current administration has yet to impose new sanctions on Russia since taking office. The Russian economy remains significantly isolated from Western markets, while the Kremlin increasingly relies on partnerships with leading BRICS nations such as China and India. Both countries have expressed their intention to continue their energy dealings with Russia, even in light of potential secondary sanctions from the United States.

According to a report by the Financial Times, the shadow fleet comprises vessels with opaque ownership structures that evade Western services like insurance and logistics, complicating the enforcement of sanctions. Nonetheless, recent initiatives to sanction these vessels have yielded some success. Two sources familiar with discussions within the White House indicated that imposing sanctions on the shadow fleet could serve as a relatively straightforward method to intensify pressure on Russia.

A third source close to the administration confirmed that broader sanctions, including potential actions against the shadow fleet, are under review. Currently, the Biden Administration has already sanctioned over 200 named Russian crude, chemical, and product tankers. Trump has reportedly refrained from expanding these sanctions in hopes of facilitating a ceasefire in Ukraine, with Russia given until Friday to respond.

Should these new U.S. measures be enacted, they would align with recent efforts by the European Union, which added over 100 ships to its sanctions list last month, bringing the total to 415. Despite these sanctions, Russian President Vladimir Putin’s military operations in Ukraine appear undeterred. The West finds itself at a crossroads, having imposed unprecedented sanctions on Russia, yet the impact remains limited.

From Moscow’s perspective, the key to resolving the conflict lies in significant territorial concessions from Kyiv and a binding commitment from Ukraine to refrain from joining NATO. The government led by Volodymyr Zelensky has consistently resisted such demands, leaving the situation in a delicate state as the deadline approaches.