Oil prices climbed on the global commodity markets as heightened geopolitical tensions flared following Ukrainian drone strikes on Russian military air bases, even as both countries prepared for fresh peace talks in Istanbul.
The gains come amid a tug-of-war between supply-side decisions and escalating conflicts, as OPEC+ members agreed to a production increase that initially softened prices, only for renewed tensions to reverse the trend upward.
Brent crude, the international benchmark, rose by 2.61%, trading at $64.24 per barrel, up from $62.60 in the previous session. Similarly, West Texas Intermediate (WTI), the U.S. benchmark, increased by 2.88%, reaching $62.02 per barrel compared to $60.28 previously.
Ukraine Targets Russian Bombers, Raises Global Tensions
The price spike follows a claim by Ukraine’s Security Service (SBU) that it destroyed 34% of Russia’s strategic bombers capable of launching cruise missiles in a series of drone strikes on Russian airfields. The SBU described the operation, named Spider Web, as having inflicted an estimated $7 billion in damages to Russia’s strategic aviation.
With the war intensifying, global attention has turned to another round of negotiations between Ukraine and Russia scheduled to take place today at Istanbul’s Ciragan Palace. The last talks were held on May 16 at the Dolmabahce Palace.
Supply Concerns Mount Amid Sanctions Threat
Investors are also reacting to the potential for new U.S. sanctions on Russia should peace efforts fail. Reports last week indicated that President Donald Trump is considering further economic penalties if Moscow does not make concessions in the ongoing conflict.
Adding to the complexity, OPEC+—which includes Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—recently agreed to increase output by 411,000 barrels per day starting in July. The move, while intended to calm fears of undersupply, has added volatility to a market already rattled by geopolitical instability.
US-China Tensions Add Another Layer
In another development contributing to market uncertainty, President Trump accused China of violating a trade agreement following failed negotiations in Geneva earlier this month. At a press briefing, he said he would speak directly with President Xi Jinping and hoped for a resolution. The risk of renewed tariffs between the world’s two largest economies is dampening oil demand prospects and limiting further price increases.
Middle East Crisis Deepens
Meanwhile, tensions in the Middle East have worsened, with Israeli forces intensifying airstrikes on Gaza, killing at least 54 people amid failed peace initiatives. More than 30 civilians were reportedly killed when Israeli tanks and drones fired on crowds gathered at aid distribution centers.
Saudi Arabia condemned Israel’s actions after Tel Aviv blocked a planned diplomatic visit by Arab foreign ministers to the occupied West Bank.
Speaking at a joint press conference in Amman, Jordan, Saudi Foreign Minister Prince Faisal bin Farhan Al Saud said Israel’s refusal to allow the committee’s visit reflects its rejection of diplomatic efforts and further complicates the path toward peace. He added that the incident strengthens the resolve of Arab nations to increase international pressure on Israel through diplomatic channels.
The combination of increasing geopolitical risks, fluctuating oil supply dynamics, and uncertainty over global trade policies continues to weigh heavily on the oil market, with prices expected to remain volatile in the near term.
