What could happen to gas prices if Biden issues new sanctions against the Russian energy sector?

New sanctions Russia’s energy sector could temporarily raise gas prices and change oil export patterns, according to experts who analyzed the overall impact of sanctions previously imposed on the country’s fossil fuels.

President Joe Biden is reportedly considering imposing new sanctions on Russian energy before he leaves office, the Washington Post reported, citing four people familiar with the matter. Sources suggested that this move could give President-elect Donald Trump more influence in possible negotiations with Russian President Vladimir Putin.

If Biden goes ahead with the sanction, analysis of US sanctions against Russia at the start of the conflict with Ukraine indicates that energy sanctions may lead to a rise in global gas prices.

The price of natural gas began to rise amid the tensions in Russia in 2022, but hit an all-time high in the US after the country invaded and sparked a years-long war with neighboring Ukraine.

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“Western sanctions on the Russian energy sector have reduced Russian revenues, but also created costs for the sanctioning nations,” wrote the Federal Reserve Bank of St. Louis in a review of the impact of energy sanctions on Russia.

Biden and Western countries imposed sanctions on Russian energy after the country invaded Ukraine, leading to a spike in diesel prices worldwide because “there simply weren’t enough refineries to meet the demand for diesel, especially after the US and other countries stopped buying energy exports from Russia.” according to an analysis of economic data from the Federal Reserve (FRED).

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According to FRED, the producer price index (PPI) for diesel in June 2022 was about 109% higher than in June 2021. However, data from the Bureau of Labor Statistics indicates that prices have decreased considerably since then.

The American Enterprise Institute (AEI), a public policy think tank, says the sanctions could have a variety of effects, including a “significant shift in oil export patterns, diverting trade flows in an economically inefficient and force sanctioned countries like Iran, Russia, and Venezuela to sell crude oil at below market prices.”

While the move could raise oil costs, one supporter of the idea suggested the end of the election could be a reason for Biden to move forward with the sanction.

“The Biden administration has been concerned about rising gas prices and worsening inflation. That was the main limitation of his Russia sanctions policy, the domestic ramifications,” said Edward Fishman, senior fellow at Columbia University’s Center for Global Energy Policy, at the Washington Post. informed “But the election is over and inflation is under control. The reasons for being so cautious about sanctions no longer apply.”

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The report comes just days after the United States issued new sanctions against several Russian-linked entities and individuals involved in the construction of Nord Stream 2, the massive undersea gas pipeline linking Russia to Germany.

Fox News’ Breanne Deppisch contributed to this report.