US's latest attack front in the Ukraine conflict: Enforcing price cap on Russian oil

The United States has announced that enforcing a price cap on Russian oil will be the biggest priority, as the war in Ukraine rages on.

"A price cap on Russia oil is a powerful tool—one part of the tool in our agenda to put downward pressure on global energy prices in a way that will benefit consumers in the US and globally," White House Press Secretary Karen Jean-Pierre told reporters during her daily news conference.

Earlier in the day, G7 finance ministers announced a cap on the price of Russian oil, which they said would put pressure on global energy prices while denying Putin revenue.

With oil prices surging past the $100/barrel mark, the US along with other G7 nations is looking at imposing some sort of price cap on Russian oil.

The war has disrupted the global supply chain which has resulted in rising prices of crude oil and some food products.

The G7 countries are inclined towards having a price ceiling on Russian oil. On the other hand, Russia is discussing cheap long-term oil deals with Asian buyers in an attempt to counter the G7 bid to cap export prices.

The US has been pressing India, a big consumer of cheap Russian oil, to join a coalition seeking to impose a price cap on Russian oil aimed at squeezing revenue streams for Moscow and softening the global energy prices.

The G7 countries, along with other allies and partners, plan to prohibit the provision of services that enable maritime transportation of such oil and products unless purchased at or below a price level determined by the coalition of countries adhering to and implementing the price cap.

Responding to a question, Jean-Pierre told reporters that the impact of G7 efforts to implement a price cap is already bearing fruit.

"Reports show that Russia is already offering steep discounts as much as 30 per cent and long-term contracts to some countries.

This also demonstrates that Russia is planning to continue supplying its oil and willing to swallow bigger discounts," she said.