Baghdad: Oil prices recorded their highest level in more than three months in early Asian trading on Monday, driven by expectations that major sanctions will impact Russian crude supplies to China and India, the world's largest and third-largest crude importers.

According to National Iraqi News Agency, Brent crude futures rose by $1.35, or 1.69%, to reach $81.11 a barrel, after hitting an intraday high of $81.44, marking the highest level since August 27. Similarly, U.S. West Texas Intermediate crude increased by $1.40, or 1.83%, to $77.97 a barrel, after reaching a peak of $78.32, the highest since October 8, 2024.

The rise in oil prices follows the U.S. Treasury Department's decision last Friday to impose new sanctions on Russian oil producers Gazprom Neft and Surgut Oil and Gas, as well as 183 tankers involved in shipping Russian oil. These sanctions are expected to disrupt the supply chain and influence global crude markets, particularly affecting major importers China and India.