Oil prices surged again on Tuesday as the United States announced a ban on energy imports from Russia.

The West Texas Intermediate (WTI) for April delivery added 4.30 U.S. dollars, or 3.6 percent, to settle at 123.70 dollars a barrel on the New York Mercantile Exchange, its highest finish since August 2008, according to Dow Jones Market Data.

Brent crude for May delivery increased 4.77 dollars, or 3.9 percent, to close at 127.98 dollars a barrel on the London ICE Futures Exchange, its highest settlement since July 2008.

U.S. President Joe Biden on Tuesday announced the imposition of an energy embargo on Russia, banning U.S. imports of oil, liquified natural gas and coal from Russia over its ongoing military operations in Ukraine.

Elsewhere, the European Union unveiled a plan to reduce its dependency on Russian fossil fuels.

Oil prices have soared recently as the Russia-Ukraine conflict prompted fears about energy supply disruptions from key exporter Russia.

"Larger curtailments of Russian energy supply and exports represent significant challenges for global energy markets," analysts at UBS said Tuesday in a note.