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 Moscow's war in Ukraine, prompting energy firms in China and India to consider cutting Russian imports.

The sanctions could break a diplomatic deadlock by making it more difficult for India to continue buying from Russia, a point of contention between President Trump and Narendra Modi.

Shares of energy companies rose as U.S. sanctions on Russia caused a rally in crude. Oil futures rose 5.6% to $61.79 a barrel after the U.S. tightened sanctions on Russian state-backed oil companies Lukoil and Rosneft.

U.S. President Donald Trump on Wednesday imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting oil companies Lukoil and Rosneft as his frustration grows with Russian President Vladimir Putin over the war.

SINGAPORE (Reuters) -Chinese state oil majors have suspended purchases of seaborne Russian oil after the United States imposed sanctions on Rosneft and Lukoil, Moscow's two biggest oil companies, multiple trade sources said on Thursday.

The Treasury Department announced the additional U.S. sanctions on Russia, targeting the oil companies Rosneft and Lukoil. Secretary Scott Bessent told reporter earlier that the sanctions would be announced.

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.