The FTSE 100 (^FTSE) and European stocks were mixed on Thursday, while oil (BZ=F, CL=F) prices hit a two-week high, after the US sanctioned Russia’s two largest producers to increase pressure on the Kremlin to negotiate an end to its war against Ukraine.

The new measures against Rosneft and Lukoil are the first material US sanctions against Russia introduced since Donald Trump re-entered the White House in January.

All assets belonging to the two firms in the US have been frozen, and US companies and individuals will be barred from doing business with them. It marks a sharp shift in tone compared to a week ago, when the two sides had talked about a possible meeting in Budapest between Trump and Russian president Vladimir Putin.

The US is also threatening secondary sanctions on foreign financial institutions that do business with Rosneft and Lukoil, which could include banks that facilitate sales of Russian oil in China, India and Turkey.

Brent (BZ=F) crude jumped 4.7% to a two-week high of $65.53 per barrel, extending a Wednesday’s 2.1% gain, as the US Treasury cited “Russia’s lack of serious commitment to a peace process to end the war in Ukraine”.

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Oil also rose amid increased risks of supply disruption.

Joshua Mahony, chief market analyst at Scope Market, said: “Oil prices are moving sharply higher as Trump seemingly ran out of patience with Putin. The Ukrainians are unwilling to give up any land that they currently control, while the Russians want the rest of the crucial Donbas region which has huge strategic and economic significance.

“With the US going straight after Russia’s biggest oil producers, and Europe banning Russian LNG, there is a hope that we will see Putin come to the table in a bid to find some sort of resolution.

“Notably, the failure of previous sanctions have been related to the Russian ability to sell their oil to India and China, but there are claims that India finally looks ready to slash its Russian imports to zero.

“That move would be done in a bid to reduce US tariffs from 50% to 15%, although the speed at which their energy supply transition would take hold is currently uncertain.”

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London’s benchmark index (^FTSE) was 0.6% higher in early afternoon trade, with shares in oil majors rising, tracking the jump in crude prices.

Germany’s DAX (^GDAXI) dipped 0.4% and the CAC (^FCHI) in Paris headed 0.4% into the green.

The pan-European STOXX 600 (^STOXX) was up 0.3%.

Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green.

The pound was 0.1% lower against the US dollar (GBPUSD=X) at 1.3344.