Tensions Rise Over G7 Price Cap on Russian Crude

A European official disclosed on Thursday that the U.S. is hesitant to agree to the European Union's proposal to lower the G7 price cap on Russian crude oil to $50 per barrel. The cap, initially established in 2022, aims to hinder Russia's ability to utilize Western insurance services for selling oil over $60 a barrel, thus crippling Moscow's revenue stream. Ukraine has advocated for an even stricter cap of $30 a barrel.

Speaking on the condition of anonymity during the G7 finance meeting in Banff, Canada, the official said the U.S. Treasury acknowledged the current decline in oil prices, which has impacted Russia. However, the U.S. remains open to further discussions on the matter, though no official statement has been made by the U.S. Treasury.

Despite tumbling oil prices, largely due to U.S. tariff threats, the EU, along with its Western allies, continues to clamp down on Russia's shadow fleet of tankers. This week, the EU introduced new sanctions targeting these entities and Russia's energy sector, underscoring ongoing geopolitical and economic tensions.

(With inputs from agencies.)