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.

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.

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.

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.