Oil prices jump after EU leaders agree to ban most Russian crude imports

Oil prices jumped after EU leaders reached an agreement late Monday to ban 90% of Russian crude by the end of the year.

During Asia hours on Tuesday, U.S. crude futures were up more than 2% to $117.74, while Brent crude futures rose 0.62% to $122.43.

The agreement resolves a deadlock after Hungary initially held up talks. Hungary is a major user of Russian oil and its leader, Viktor Orban, has been on friendly terms with Russia’s Vladimir Putin.

The embargo is part of the European Union’s sixth sanctions package on Russia since it invaded Ukraine. Talks to impose an oil embargo have been underway since the start of the month.

Roughly 36% of the EU’s oil imports come from Russia, a country that plays an outsized role in global oil markets.

The ban could exacerbate worries over an already-tight energy market. Energy prices have soared over the past year, contributing to a heated inflationary environment in many countries.