Russian oil could be hit with a price cap as G7 aims to cut off Moscow's ability to fund its war machine

The leaders of the G7 met in the Alps on Sunday to discuss a possible price cap on Russian oil in order to further squeeze Moscow.

India is one of the nations that has been buying up huge amounts of Russian oil on the cheap since the war in Ukraine began.

Europe would use its global dominance in shipping and insurance services to restrict availability to them if Russians observe price caps.

According to the Financial Times, the Chancellor of Germany said the approach would need wide-spread buy-in from other nations if it was to succeed.

Russia is raking in huge profits from its oil and gas exports as crude prices have surged this year. If more EU sanctions slam Russian supplies, Bank of America predicts prices will go to $150.

The EU agreed to a ban on Russian crude imports in May. Buyers of Russian oil outside the trading bloc would be hit by the EU sanctions.

The US and the UK both banned Russian crude by the beginning of the year.

The targeting of Russian energy supplies has helped to raise prices.

The president of the European Council said that the bloc was prepared to discuss a price cap but that a clear vision was needed.

"We want to make sure that the goal is to target Russia and not to make our life more difficult and more complex."