President Trump escalated America's economic war with Russia by sanctioning Lukoil and Rosneft, cutting the oil giants off from global finance despite the risk of higher prices. The sharp shift from tariffs follows stalled talks on Ukraine and a canceled Budapest summit, and appears coordinated with Britain and the EU. Analysts say the measures could drain energy revenues that fund the Russian economy, with secondary sanctions looming over global banks and Indian refiners. Oil, down 18% this year to about $59 a barrel, jumped on the news. "I just felt it was the right time," Trump said.

Prepared by Christopher Adams and reviewed by editorial team.