US resists European push to lower Russian oil price cap ahead of G7 summit

The United States is holding firm against European calls to reduce the price cap on Russian oil sales, dampening hopes that G7 leaders meeting in Canada will reach a consensus on tightening economic pressure on Moscow.

The Trump administration has shown no signs of shifting from its current stance, first outlined during a G7 finance ministers meeting earlier this year. While the final decision rests with President Donald Trump and some remain cautiously optimistic, there has been no indication of imminent change, people, who asked not to be identified discussing private deliberations, told Bloomberg, Caliber.Az reports.

The European Union and the United Kingdom are advocating for a reduction in the cap from $60 to $45 per barrel, arguing that a lower limit would cut deeper into Russia’s oil revenues—seen as a critical funding source for its war in Ukraine. The proposed cap is part of the EU’s latest sanctions package aimed at tightening the financial screws on Moscow.

The White House declined to comment on the matter as of June 13.

Oil prices, which had recently dipped below the current $60 cap, spiked sharply following Israel’s airstrikes on Iran in the past 24 hours. West Texas Intermediate crude futures jumped more than 7 per cent, settling near $73 per barrel—the largest single-day gain since March 2022.

One EU official noted that the bloc and the UK might consider lowering the cap unilaterally if the US remains opposed. Given that much of Russia’s oil exports pass through waters near Europe, the move could still have some impact. However, a united G7 agreement, particularly with US involvement in enforcement, would likely carry more weight and increase the effectiveness of the sanctions.

By Sabina Mammadli