FT News Briefing Trump’s Russian oil sanctions shake energy markets
62 snips
Oct 24, 2025 Jamie Smith, FT U.S. Energy Editor, discusses the ramifications of Trump's sanctions on Russian oil, revealing how lower crude prices influenced this bold move. He highlights the potential disruptions to global markets, particularly if India and China reduce their Russian oil purchases. Meanwhile, Kira Nugent, FT correspondent in Buenos Aires, delves into Javier Milei's controversial economic reforms and their impact on Argentina's midterm elections. Voter sentiment swings as support ebbs for Milei amid concerns for the middle class.
AI Snips
Chapters
Transcript
Episode notes
Sanctions Trigger Immediate Oil Price Shock
- Trump's sanctions targeted Rosneft and Lukoil, aiming to pressure Putin into negotiations over Ukraine.
- The move shocked markets and triggered a roughly 6% spike in oil prices within 24 hours.
China and India Hold The Key
- China and India buy more than half of Russia's ~5 million barrels per day, so their reluctance to buy would leave huge volumes unsold.
- Secondary sanctions that bar buyers from U.S. capital markets would dramatically reduce potential buyers for Russian oil.
Winners And Losers From Price Rebound
- Lower oil prices this year had squeezed majors' profits and investor returns, so a price rebound eases that pressure.
- A sustained sanctions-driven price rise could help majors' cash flows but also benefit Russia unless buyers are cut off.