The price of Brent crude oil dropped by 43 cents, or 0.53%, to $80.58 per barrel on Tuesday.

According to RoydadNaft –  citing Reuters, oil prices declined during Tuesday’s trading session but remain close to a four-month high, driven by the impact of newly imposed U.S. sanctions on Russian oil exports.

Brent crude oil fell by 43 cents, or 0.53%, to $80.58 per barrel, while U.S. West Texas Intermediate (WTI) crude slid by 34 cents, or 0.43%, to trade at $78.48 per barrel.

On Monday, oil prices surged by 2% following the U.S. Treasury Department’s announcement of sanctions targeting Russia’s Gazprom Neft and Surgutneftegaz, as well as 183 oil tankers carrying Russian crude.

Analysts believe that news of fresh sanctions against Russian oil has been the primary driver behind the recent increase in oil prices over the past week.

Market participants are also awaiting the release of the U.S. Producer Price Index (PPI) and Consumer Price Index (CPI) data today and tomorrow. If inflation exceeds the forecasted 0.02%, it could close the door on further interest rate cuts by the Federal Reserve this year. Lower interest rates typically stimulate economic growth and, in turn, boost oil demand.

Analysts estimate that the new sanctions could reduce Russian oil exports by 700,000 barrels per day, eliminating the oversupply previously anticipated for the current year. However, they note that the actual impact on Russian oil flows will likely be much smaller, as Russia and its trading partners may find ways to circumvent the sanctions.