Oil prices slipped on Tuesday as progress in Ukraine peace negotiations eased concerns over supply disruptions, while fresh U.S. tariffs on Indian imports added uncertainty to global trade.
Brent crude fell 0.77% to $65.63 per barrel, down from $66.14 at Monday’s close. U.S. benchmark West Texas Intermediate (WTI) dropped 0.79% to $62.11 from $62.61 in the previous session.
The decline followed remarks by U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy, who signaled momentum toward peace talks with Russia. Trump said preparations were underway for a trilateral summit with Russian President Vladimir Putin and Zelenskyy, while the Ukrainian leader confirmed his readiness for direct talks with Putin, followed by a broader round involving the U.S. and European leaders.
German Chancellor Friedrich Merz added that a Zelenskyy-Putin meeting could take place within two weeks, easing market fears over supply risks. Analysts noted that while a ceasefire is not yet imminent, signs of progress have reduced geopolitical tension in energy markets.
At the same time, traders weighed the impact of U.S. trade measures against India after Washington announced a 25% penalty tariff on Indian goods in response to New Delhi’s rising purchases of Russian crude. The levy, effective August 27, will lift tariffs on many Indian imports to as high as 50% and has frozen bilateral trade talks.
White House trade adviser Peter Navarro criticized India’s growing reliance on Russian oil, calling it “opportunistic and corrosive” to global sanctions efforts. He accused Indian refiners of funding Russia’s war economy, noting the country’s imports of Russian crude had surged from just 1% to more than 30% since the Ukraine conflict began in 2022.
New Delhi dismissed the U.S. tariffs as “unfair and unjust” and is expected to continue sourcing discounted Russian crude as long as it remains economically viable. Analysts said upcoming U.S.-India talks later this month could prove critical in shaping market sentiment.
Meanwhile, investors are also turning attention to the U.S. Federal Reserve’s annual Jackson Hole symposium from August 21–23, where Chair Jerome Powell is expected to provide signals on the outlook for interest rate cuts.
