Oil Prices Steady After Trump Ultimatum Risks Russian Supply

Oil prices rose slightly following a previous session gain of over 3%, driven by concerns about potential supply shortages after U.S. President Donald Trump issued a shortened deadline for Russia to end the war in Ukraine, threatening 100% secondary tariffs on Russian trading partners. Brent crude and U.S. West Texas Intermediate prices reached their highest levels since June 20, reflecting market reactions to these geopolitical tensions. Analysts note that such tariffs could disrupt Russian oil purchases, especially by major U.S. trading partners, although China is unlikely to comply with U.S. sanctions while India may reduce its imports, risking about 2.3 million barrels per day of Russian oil exports. The U.S. also warned China of significant tariffs if it continues purchasing Russian oil, while a U.S.-EU trade deal averted potential trade tensions, contributing to oil price support. Additionally, U.S. crude inventories fell more than expected, and ongoing geopolitical and economic uncertainties continue to influence the energy market landscape.