Oil prices climbed about 2% to a four-month high on Monday on expectations that wider U.S. sanctions on Russian oil would force buyers in India and China to seek other suppliers.

The U.S. Departments of Treasury and State Friday applied new sanctions on Russia's oil production and exports. Sanctioned were oil companies, 183 ships, dozens of oil traders, insurance companies and energy officials.

A fresh wave of U.S. sanctions against Russia’s oil industry threatened to disrupt global supplies, sending crude prices to their highest in more than four months.

Sweeping U.S. sanctions on Russia's oil industry will make it more expensive for Moscow to sell its oil and complicate sea-borne crude exports due to restrictions on tankers, analysts and traders said on Monday.

India intends to abandon oil tankers that have been sanctioned by the United States because of their role in transporting goods for Russia, which is another example of the impact of Washington's measures on the global oil market.

Chinese and Indian refiners are seeking alternative fuel supplies as they adapt to severe new U.S. sanctions on Russian producers and tankers that are designed to curb the revenues of the world's second-largest oil exporter.

Bloomberg reported that India will not allow tankers carrying Russian oil subject to American sanctions to enter its ports. This is a significant blow to Vladimir Putin's policy. The Indian market became one of the key markets for Russia after the EU decided to abandon Russian raw materials following the invasion of Ukraine.

Russia has emerged as the top supplier of oil to India in the past three years as it offered crude at discounted prices after its invasion of Ukraine in 2022.

Oil prices extended gains for a third session on Monday, with Brent rising above $80 a barrel to its highest in more than four months, as wider U.S. sanctions are expected to affect Russian crude exports to top buyers China and India.