US Opposes European Push to Lower G-7’s Russia Oil Price Cap
(Bloomberg) -- The US isn’t budging from its opposition to a lower price cap on Russian oil sales, people familiar with the matter said, dampening European hopes that leaders meeting for a Group of Seven summit in Canada will agree to a cut.
A final decision rests with President Donald Trump and officials haven’t lost all hope, according to the people, who asked not to be identified discussing private deliberations. But so far there’s no movement from the position that the US spelled out at a meeting of G-7 finance ministers earlier this year, they said.
The European Union and the UK are seeking to lower the cap to $45 per barrel from the current $60 rate as a way of pressuring Russia’s oil revenues, which are critical to sustaining its war against Ukraine. The European Union has included the lower cap in its latest sanctions package targeting Moscow over its invasion of Ukraine.
The White House declined to comment on Friday.
Oil prices had dropped below the G-7 cap but surged following Israel’s strikes against Iran in the last 24 hours. West Texas Intermediate crude futures advanced more than 7% to settle near $73 a barrel, the biggest one-day jump since March 2022, following the attacks.
The EU and UK could explore lowering the cap without the US, one of the people said. However, several member states don’t want to move without the US and high oil prices have complicated discussions further, the person added. Most of Russia’s oil is transported near European waters so going it alone might have some effect. But an accord involving all G-7 nations would be more effective as it would be able to rely on US enforcement.
(Updates with more details of European position in final paragraph.)
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