Global financial advisory firm deVere Group has warned that the United States’ decision to impose sweeping sanctions on Russia’s two largest oil producers, Rosneft and Lukoil, could spark a new wave of turbulence across global markets.
The sanctions – the first direct measures by President Donald Trump’s administration targeting Russia’s energy sector – aim to curb Vladimir Putin’s ability to finance the war in Ukraine by striking at the country’s most lucrative exports.
Under the new restrictions, US companies and individuals are barred from doing business with Rosneft, Lukoil, and their subsidiaries. The measures could also cut the firms off from US dollar-based financial transactions.
Oil prices rose immediately following the announcement, with Brent crude climbing around 3% to $64.50 a barrel as traders reacted to the potential impact on global supply chains.
The UK introduced similar measures last week, while the European Union is preparing its nineteenth sanctions package, which includes a proposed ban on Russian liquefied natural gas imports.
Nigel Green, CEO of deVere Group, said the coordinated Western response is likely to create renewed volatility across multiple asset classes.
“These sanctions hit the core of Russia’s economy — energy exports — and markets are responding instantly,” he notes.
“When a major global supplier faces restrictions, price and supply dynamics shift overnight. We expect a period of short-term turbulence across oil, equities, and currencies as some investors reposition.”
He added that the move comes at a sensitive stage for the world economy.
“Markets had been stabilising on expectations of easing inflation,” says Nigel Green. “This development changes that narrative. Energy prices are moving higher again, which could revive inflationary pressures and complicate central banks’ plans to lower rates.”
The US Treasury, led by Secretary Scott Bessent, described the sanctions as an effort to “degrade” Putin’s war chest and urged allies to follow the US lead.
President Trump hailed the decision as “tremendous,” while Ukrainian President Volodymyr Zelenskyy said his nation had “waited for this moment.”
According to Nigel Green, the united front displayed by Western powers amplifies both the political and economic impact of the sanctions.
“When the US, UK, and EU move in unison on energy sanctions, it’s a powerful signal — but it also magnifies risk,” he explains.
“Global energy markets are tightly linked. Disruption in Russian supply can send price shocks through every region, particularly in energy-importing economies.”
deVere warned that investors should brace for an extended period of market volatility and shifting sentiment.
“Oil traders will chase momentum, safe-haven demand will lift the dollar and gold, and equity markets could experience heightened swings,” says Nigel Green. “This volatility phase could persist if the sanctions remain in place for several weeks, or if Russia retaliates.”
He added that while the sanctions are intended to hasten an end to the conflict, their economic repercussions will be far-reaching.
“The sanctions will reshape energy flows and global trade,” says Nigel Green. “We can expect Russia to deepen ties with non-Western buyers such as China and India, which could redraw pricing structures and long-term supply routes. It’s an immediate geopolitical and economic realignment.”
Nigel Green concluded: “Until there’s clarity on how long these restrictions will remain, investors should expect continued fluctuations across commodities, currencies, and equities.”
