EU may freeze Russian oil price cap amid Middle East tensions

The European Union is considering temporarily freezing the price cap on Russian oil amid rising global oil prices caused by the conflict in the Middle East, Report informs, citing Bloomberg.

The current price cap stands at $44.10 per barrel. The cap is set 15% below the average market price of Russia's Urals crude, but a surge in oil quotes due to concerns over the possible closure of the Strait of Hormuz could have led to the next review raising the cap to $65 per barrel, the report said.

According to the agency's sources, one option under consideration is to keep the cap at its current level. Other measures being discussed include suspending the automatic increase until the end of the year, taking into account the situation in the Middle East.

The measure could be part of the EU's next package of sanctions against Russia. The EU plans to complete preparations and formally present the new restrictions in early June.