Oil Prices Tick Higher Amid Russia Sanction Speculation, Despite Tariff Headwinds
Oil prices inched up during early Asian trading on Monday, building on last week’s gains as investors weighed the possibility of fresh U.S. sanctions against Russia, while remaining wary of escalating trade tensions following new tariff announcements from President Donald Trump.
By 21:22 ET (01:22 GMT), September Brent crude futures had risen 0.2% to $70.48 a barrel, while West Texas Intermediate (WTI) futures were up 0.2% to $68.55.
Both benchmarks rallied nearly 3% last week, driven by strong gains on Friday after the International Energy Agency (IEA) warned of tighter market conditions than expected. Despite a larger-than-forecast production increase from OPEC+, the IEA noted that refinery activity is picking up to meet peak summer fuel demand.
Markets Watch for Potential U.S. Action Against Russia
Over the weekend, President Trump announced plans to deliver Patriot missile systems to Ukraine and expressed dissatisfaction with Russian President Vladimir Putin over stalled peace efforts.
Trump also signaled he would issue a “major statement” on Russia on Monday, prompting speculation that Washington may introduce additional sanctions targeting Russian energy exports.
A bipartisan bill in the U.S. Congress proposing steep sanctions on Russia is gathering momentum, including provisions that would hit any country buying Russian oil and gas—such as China or India—with punitive 500% tariffs. However, the White House has yet to formally endorse the legislation.
New Tariff Wave Caps Oil Momentum
Trump’s weekend announcement of 30% tariffs on most imports from the European Union and Mexico, set to begin August 1, further roiled markets. That move followed earlier declarations of tariffs on goods from Japan, South Korea, Canada, and Brazil, including a 50% duty on copper.
With less than three weeks to reach new trade agreements, market participants remain on edge over further escalations.
Tariffs tend to weigh on global growth by disrupting supply chains and raising costs—dampening industrial production and travel, two key sources of oil demand.
