Yellen ‘optimistic’ on deal to set price cap on Russian oil

US Treasury Secretary Janet Yellen said Wednesday she was "optimistic" about the possibility of an international agreement to set a price limit on Russia's oil exports.

"I'm really optimistic about the substantial progress that's been made by our teams and the entire G7 for making the price cap a reality," Yellen said.

The US official met with her British counterpart, Chancellor of the Exchequer Nadhim Zahawi, and noted that "the United Kingdom has been a key ally in the G7's work to put in place a price cap on Russian oil."

The leaders of the Group of Seven advanced nations agreed in late June to work towards implementing the ceiling on crude sales, to choke off Moscow's war chest, as well as bring down global energy prices.

Yellen said the goal is to deny Vladimir Putin the funds to continue the war in Ukraine and to prop up the Russian economy.

A G7 official late last month explained that the maximum price would remain above the cost of the production, so it would not make economic sense for Moscow to deny oil to importing countries.

"We know that there's a great deal of room between the price of production, and what Russia is making today," the official told reporters.