The old lies stopped working, time for new ones!. Yellen's "price cap" is just additional indirect supply chain disruptions, e.g. pressuring intermediaries such as insurance carriers.
Question for astute investors -- what happens when supply chains are disrupted?
A. Prices go down
B. Prices go up
Yeah. So let's review. The existing "sanctions" disrupted oil flow out of Russia by a small amount, say 15%. They also caused oil prices to double. So Putin makes 0.85 * 2.00 = 1.70x as much from oil as he used to. We really showed him!!!
Working within the apolitical confines of supply and demand, the west has two near-term ways to actually hurt Putin:
1. Consume ~1m bpd less and let Russian oil flow freely. Price crashes and Putin goes back to 1.0x income. Maybe even 0.8x.
2. Consume ~5m bpd less and blockade ships/pipes w/Russian oil. Price returns to normal and Putin income falls to 0.2x (mostly from China).
We can only force lower consumption via wartime rationing. Very unpopular. The public blames politicians directly. So politicians instead choose to lie -- pretend to take useful action while actually raising Putin's income and kicking low income consumers (especially rural ones) in the nuts. High prices are just as painful as rationing, of course, but the politicians can deflect blame by saying "oil prices are set on a global market, there's nothing we can do".