A turbulent period for global markets could follow the United States’ decision to impose sweeping sanctions on Russia’s two biggest oil companies, Rosneft and Lukoil, says deVere Group, one of the world’s largest independent financial advisory organisations.
The measures, the first direct action by President Donald Trump’s administration against Moscow’s energy sector, are designed to weaken Vladimir Putin’s ability to fund the war in Ukraine by targeting Russia’s most valuable exports.
The sanctions prohibit US entities and individuals from conducting business with the firms and their subsidiaries and could block them from all dollar-based transactions.
Oil prices rose immediately after the announcement, with Brent crude climbing around 3% to $64.50 a barrel as traders reacted to potential disruption in global supply.
The UK last week introduced similar restrictions, and the European Union is preparing its nineteenth sanctions package, including a ban on Russian liquefied natural gas imports.
Nigel Green, CEO of deVere Group, says the coordinated Western action is likely to inject fresh volatility across 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 adds that the move comes at a delicate moment for the global 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, said the sanctions are intended to “degrade” Putin’s war chest and called on allies to follow suit.
President Trump described the measures as “tremendous,” while Ukrainian President Volodymyr Zelenskyy said his country had “waited for this moment.”
Nigel Green says the coordinated nature of the action magnifies both its geopolitical weight and its market impact.
“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 warns that investors should prepare for a period of sharper market reactions 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 adds that while the sanctions are designed to accelerate an end to the war, the economic side effects will not be contained.
“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 concludes: “Until there’s clarity on how long these restrictions will remain, investors should expect continued fluctuations across commodities, currencies, and equities.”