Oil prices jump as U.S. imposes sweeping sanctions against Russia oil industry

Oil prices jumped more than 3% on Friday as the U.S. Treasury Department announced sweeping sanctions against Russia's oil industry.

Brent gained $2.82, or 3.67%, to $79.74 per barrel by 10:32 a.m. ET, while U.S. crude oil advanced $2.89, or 3.91%, to $76.81 per barrel.

The sanctions target Russian oil companies Gazprom Neft and Surgutneftegas and their subsidiaries, more than 180 tankers, and more than a dozen Russian energy officials and executives. The sanctioned executives include Gazprom Neft CEO Aleksandr Valeryevich Dyukov.

The sanctioned vessels are mostly oil tankers that are part of Russia's "shadow fleet" that has dodged existing sanctions on the country's energy exports, according to the Treasury Department.

"The United States is taking sweeping action against Russia's key source of revenue for funding its brutal and illegal war against Ukraine," Treasury Secretary Janet Yellen said in a statement.

"With today's actions, we are ratcheting up the sanctions risk associated with Russia's oil trade, including shipping and financial facilitation in support of Russia's oil exports," Yellen said.

The Biden administration has sought to ratchet up pressure on Russia and dispense aid to Ukraine before President-elect Donald Trump takes office.

This is a developing story. Please check back for updates.