US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law, expanding sanctions, tariffs and prohibitions against Russia while extending existing measures on Iran. The White House confirmed the signing on Sept. 18, placing energy markets under renewed scrutiny.
The law gives Washington the power to impose tariffs of up to 100% on countries importing Russian energy, targeting Russia's energy sector and its so-called shadow fleet of tankers. Major buyers such as India are under immediate pressure, with investors closely tracking crude oil prices, the rupee, the Nifty and Sensex, and foreign investor flows.
Russian crude is already trading sharply higher. Russia's ESPO Blend climbed above $120 a barrel this week for the first time since April as Chinese refiners competed for supply amid disruptions to Middle Eastern exports, while Urals crude reached roughly $110. According to Reuters, ESPO's premium over Brent has widened to a record $20–$30 per barrel.
Brent itself was already above $100 before the new sanctions arrived. Middle East supply risks have pushed crude toward $108, reviving inflation concerns across financial markets. Saudi Arabia's loss of a key alternative export route has added another constraint by reducing its ability to bypass the Strait of Hormuz.
Despite the risk-off pressures in traditional markets, Bitcoin and the broader crypto market have remained positive so far, with no clear risk-off reaction. The situation remains fluid as investors assess how higher energy costs might feed into inflation and central bank policy.
