Global crude oil prices fell on Tuesday following U.S. President Donald Trump’s warning of severe sanctions on Russia if it fails to negotiate with Ukraine, sparking concerns about economic disruptions and reduced energy demand. Brent crude traded at $67.73 per barrel, a 0.7% decline from $68.20, while West Texas Intermediate (WTI) dropped 0.7% to $64.13 from $64.61.
Trump’s threats to curb Russian oil exports have intensified downward pressure on prices. He emphasized that Russia and Ukraine must engage in direct talks, stating, “It’s up to them to resolve it. It takes two to tango.” Meanwhile, the U.S. is preparing to impose steep tariffs on India for its Russian oil purchases, escalating from a 25% to a 50% duty effective August 27. Indian exporters are bracing for disruptions as talks with Washington continue, with analysts warning that these measures could slow economic growth and dampen energy demand.
The dismissal of Federal Reserve Board Member Lisa Cook by Trump, citing alleged false statements in mortgage documents, has raised concerns about the Fed’s independence, partially offsetting further oil price declines. Analysts view this as a rare intervention in central bank affairs, potentially eroding investor confidence.
In Russia, a gasoline export ban has been extended due to rising domestic prices driven by summer demand and agricultural needs. The Russian Ministry of Energy, led by Deputy Prime Minister Alexander Novak, announced investigations into regional price inflation. The ban, initially implemented on July 28 and set to expire on August 31, aims to stabilize domestic fuel prices amid challenges from drone attacks on refineries and heightened agricultural demand. Russia, a major global energy exporter, produces over 40 million tons of gasoline annually.
