Biden Bans Imports of Russian Oil. What is the Business Impact?

President Biden announced Tuesday morning that the United States was banning oil imports from Russia. This comes after Ukrainian President Volodymyr Zelenskyy called on U.S. lawmakers for assistance over the weekend.

The ban on Russian oil is broadly popular on both sides of the aisle in Congress, as well as with the American people.

According to Reuters, 80% of Americans support a ban on Russian oil imports, as @Sen_JoeManchin and I have proposed.
It’s this simple: the vast majority of Americans do not want their dollars to finance Russia’s awful war on Ukraine.
If @POTUS doesn’t act, Congress will.
— Sen. Lisa Murkowski (@lisamurkowski) March 6, 2022

Concerns over oil prices predate Russia’s invasion of Ukraine, but experts like Tim Snyder from Matador Economics expect prices quickly rise as a result of this move.

With this ban, the U.S. is separating itself from its allies, many of whom rely on Russian oil for a much higher percentage of their overall energy supply. A report from Reuters indicates that Russian oil represents a third of the EU’s supply, while the U.S. relies on Russia for less than 10% of all oil imports.

However, it remains to be seen how consumers and businesses will react to the impact this will have at the pump. While the ban has broad and sweeping approval for the time being, the full effects of this decision will be felt over the coming weeks and months.

As David Beaird, supply chain expert, and U.S. Army veteran, suggests, rising oil prices are yet another hit to an already disrupted supply chain.

For continuing analysis of the impact of rising oil prices, stay tuned to MarketScale.