EU To Ban Most Russian Oil by Year-End

European Union leaders agreed late Monday to immediately ban 75% of oil imports, with plans to reach a ban on 90% of Russian oil by the end of this year, the Associated Press reported. The sanction covers oil imported by sea, but allows a temporary exemption on imports delivered by pipeline, "a move that was crucial to bring landlocked Hungary on board a decision that required consensus," the article reads.

The sanctions also undercut Russia's efforts to sell oil in Asia by banning insurers from covering tankers carrying Russian oil anywhere in the world, per The Wall Street Journal. "The embargo is a high-risk strategy for the EU, forcing the bloc to break its dependency on cheap Russian energy. It is likely to fuel inflation already running at the highest pace in decades on both sides of the Atlantic," the report reads.

Brent crude is already feeling the impact. Prices rose to $120 a barrel after the agreement, according to another AP report. "Aimed at punishing Moscow for its war with Ukraine, the deal is a double-edged sword that could also magnify the pain for people and businesses already struggling to cope with higher energy costs."