The United States is blocking European efforts to cut the G7 price cap on Russian oil from $60 to $45 per barrel, frustrating EU and UK attempts to ramp up pressure on Moscow’s war financing, Bloomberg reports.

The EU and UK could consider lowering the cap without the US, according to one of Bloomberg’s sources. The US, however, is not shifting its stance on the oil cap despite calls from the European Union and the UK to lower the limit. The proposal, aimed at reducing Russian oil revenues used to sustain its war against Ukraine, faces US resistance just ahead of the Group of Seven summit in Canada.

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People familiar with the matter told Bloomberg that the final decision on any change rests with President Donald Trump. However, those sources said there has been no indication of flexibility from Washington since the US position was set during a G7 finance ministers’ meeting earlier this year.

Europe’s proposal forms part of latest sanctions package

The push to reduce the cap to $45 per barrel is part of the EU’s new sanctions package against Russia. The measure is intended to limit Russia’s capacity to fund its ongoing invasion of Ukraine by cutting deeper into its oil profits.

Given that most Russian oil shipments pass near European waters, unilateral European action could still have some impact. However, officials acknowledge that a coordinated G7 effort involving the US would be significantly more effective, largely because of US enforcement capabilities.

Oil prices, which had fallen below the $60 G7 ceiling, surged following Israeli strikes on Iran. 

Israel’s attack on Iran may have revived Moscow’s oil revenues for war

The current $60 per barrel cap was originally introduced by the G-7 as part of broader sanctions designed to curb Russian revenue while maintaining global supply. Enforcement of this cap relies heavily on G7 members, especially the US, which has extensive influence over global shipping and insurance mechanisms.

The world holds its breath after an Israeli strike on Iran, but Kyiv braces for worse as Washington’s priorities may shift, Radio Free Europe/Radio Liberty reports. 

Global reaction has been mixed, ranging from calls for restraint to avoid a regional war to open support for Israel’s decisive action. But for Ukraine, this escalation spells troubling consequences.

Analysts warn that the rising tensions between Israel and Iran could prompt the United States to divert its attention and resources from the war in Ukraine to the Middle East. This would be a deeply dangerous shift for Kyiv, which depends on uninterrupted allied support to resist Russian aggression.

“Without a doubt, this will distract some attention from the defense of Ukraine against Russian aggression,” said Roland Freudenstein, a Brussels-based analyst.

The Trump administration has been clear about its intent to bring the war in Ukraine to a swift close, even at the cost of painful compromises. A new crisis in the Persian Gulf only reinforces this narrative. Meanwhile, Trump’s self-imposed “two-week” window for striking a deal with Russia has just expired.

Beyond geopolitics, energy markets are also feeling the impact. Following Israel’s strikes, oil prices surged to $75 per barrel, a $5 spike in just hours. That’s direct profit for the Kremlin’s war chest.

“If the Middle East crisis deepens, it will inevitably push energy prices up. And in some ways, this benefits Russia,” warns analyst Ian Lesser.

While considering a price cap of $45 per barrel on Russian oil, the European Union risks losing leverage. Kyiv is demanding even tougher measures, a $30 cap, to strangle the Kremlin’s war financing. But in the current chaos, this plan may become harder to implement.

Once again, Ukraine stands to become a victim in a war, this time between Israel and Iran.

Russia could reach the borders of Romania, a NATO member, and attack other countries if Europe fails to help defend Moldova. On 11 June, at the Ukraine–Southeastern Europe summit, Ukrainian President Volodymyr Zelenskyy said that after targeting Moldova, Moscow plans to occupy the Ukrainian port city of Odesa, UNIAN reports. 

According to Zelenskyy, Southeastern Europe and Ukraine are among Russia’s targets for provoking chaos in Europe. Moscow has already stirred unrest in the Balkans, attempted to manipulate public opinion in Romania, and has kept Moldova in poverty and instability for three decades in an effort to bring it under its control, he said. 

“If Europe loses Moldova this year, it will encourage Russia to interfere even more in your countries, seizing your resources, your sovereignty, and even your history,” Zelenskyy warned.

The Ukrainian leader stressed that Russia does not see Ukraine as a sovereign state, but rather as a heap of resources and a military platform for future invasions.

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Regardless of what Putin believes, Zelenskyy said, European countries must put Russia in a position where the aggressor is forced to seek peace. He emphasized that this is entirely possible and depends on Ukraine’s defense capabilities.

“Air defense systems and drones are crucial. Another key tool is sanctions,” he claimed.

Zelenskyy explained that Ukraine needs stronger support, especially regarding Russian oil tankers and the aggressor’s financial sector.

“About the oil price cap: $45 per barrel is better than $60—that’s obvious, that’s true. But real peace will come with a cap of $30 per barrel,” he emphasized.

He also urged European countries to treat postwar security guarantees as a matter of practical necessity.