Oil Prices Surge Over 4% on U.S.-Russia Tensions and EU Trade Pact

Crude oil prices rallied sharply on Tuesday, gaining over 3% amid escalating geopolitical tensions and a major energy trade agreement between the U.S. and the European Union. President Donald Trump issued a 10-day ultimatum for Russia to end its war in Ukraine, warning of steep secondary sanctions on countries continuing to import Russian oil.This raised concerns over potential supply disruptions in global oil markets. West Texas Intermediate (WTI) crude settled at $69.21 per barrel, up $2.50 or 3.75%, while Brent crude closed at $72.51, rising $2.47 or 3.53% — both benchmarks reaching their highest levels since June 20.Crude prices have shown a strong short-term rally, closing at $71.68 on July 29, up 4.51% weekly, 7.35% monthly, and 13.27% on a quarterly basis. However, prices are still down 10.15% year-on-year compared to $79.78 a year ago. The commodity is currently 12.90% below its yearly high of $82.30 (recorded on August 12, 2024), and 21.59% above the yearly low of $58.95 (on May 4, 2025).Supporting the upward momentum, the U.S. and EU reached a deal that includes $750 billion in European purchases of American energy and $600 billion in European investment in the U.S. by 2028. The agreement helped avert a full-scale transatlantic trade war, improving market sentiment.Meanwhile, U.S. crude stockpiles rose by 1.54 million barrels last week, according to American Petroleum Institute data, with official EIA figures awaited. Trump dismissed supply concerns, asserting the U.S. could ramp up domestic production if needed.Disclaimer: PolyMart does not offer guarantees regarding the accuracy, reliability, or completeness of the information provided on its platform. Users are advised to independently verify any data before relying on it for decision-making purposes.