Oil prices are rising after the European Union leaders agreed on a plan to block more than two-thirds of Russian oil imports.
As a result of the partial oil embargo Brent crude rose above $123 a barrel on Tuesday, the highest it has been for two months. WTI rose near $119 in the early trading.
Prices for oil and gas have soared in recent months fueled by sanctions against Russia, which is the third global oil producer and the top provider of energy to European countries. Russia currently supplies 27% of the EU’s imported oil and 40% of its gas.
The new decision by the EU will add pressure to the economy of many of its country members. The cascading effect however is expected to reach the rest of the world.
After the UE announced its decision Russia said it will find new markets. “As she rightly said yesterday, Russia will find other importers,” Mikhail Ulyanov, Russia’s representative to international organizations tweeted, after the European Commission President Ursula von der Leyen announced the decision.
The ban agreed will be immediate on oil being transported by sea, which represents two-thirds of the total exported by Russia.