Days after canceling a planned summit with Putin, citing a lack of progress toward ending the war in Ukraine, Trump took a major step by effectively blacklisting Rosneft and Lukoil.

The German government is racing to secure exemptions from US sanctions targeting Russia’s oil company Rosneft, which still owns three refineries in Germany that have been placed under state administration.

Trump's sanctions come as the EU agreed to impose new measures targeting Moscow's oil and gas revenues, which together are likely to maintain economic pressure on Russia despite Trump's faltering peace push and an escalation of the Kremlin's offensive in Ukraine.

"Now is the time to stop the killing and for an immediate ceasefire," Treasury Secretary Scott Bessent said. "Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine.

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.

Oil prices rose by more than $1 per barrel on Thursday, extending gains from the previous session, after the United States imposed sanctions on Russian oil companies Rosneft and Lukoil over the Ukraine war.