Occidental Petroleum Corporation ( OXY ) shares are trading higher Thursday as prices rise after the U.S. imposed sanctions on two Russian oil companies, Rosneft and Lukoil.

What To Know: According to BBC, the U.S. announced new sanctions targeting Russia's two largest oil producers in an effort to pressure Moscow to negotiate a peace deal in Ukraine.

The move came a day after President Donald Trump said a planned meeting with Russian President Vladimir Putin in Budapest would be shelved indefinitely, citing frustration over stalled peace talks.

While the economic impact on Russia is expected to be limited, the sanctions mark a significant shift in Trump's foreign policy after previously stating he would wait to act until European nations stopped purchasing Russian oil. The Kremlin said Russia was "immune" to the sanctions.

Oil and gas are Russia's largest exports, with Rosneft and Lukoil together responsible for roughly 3.1 million barrels per day — about 6% of global output. Moscow's biggest customers include China, India and Turkey, though it wqs reported India is preparing to sharply reduce its Russian oil imports in light of the new sanctions.

Trump said the sanctions were "tremendous," adding that they could be lifted if Russia agreed to halt its invasion. U.S. Treasury Secretary Scott Bessent said the measures were needed due to "Putin's refusal to end this senseless war."

Energy stocks rose following the announcement, with Occidental Petroleum ( OXY ) among those gaining on the news. The sanctions are expected to disrupt Russian oil exports and reduce global supply, driving up crude prices and benefiting U.S. producers like Occidental.

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OXY Price Action: At the time of writing, Occidental shares are trading 2.92% higher at $42.95, according to data from Benzinga Pro.

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