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Crude oil prices rebounded on Tuesday, supported by easing trade tensions and heightened geopolitical uncertainty tied to Russia’s ongoing conflict in Ukraine.

Brent crude settled $1.60 higher at $70.04 per barrel.

WTI gained $1.55 to close at $66.71—reversing losses from the prior session. 

A combination of supply-side concerns and tentative progress in global trade negotiations underpinned the rally.

A newly concluded trade pact between the United States and the European Union averted a broader transatlantic trade confrontation. Market participants viewed the outcome as constructive, with the deal seen as reducing downside risks to global economic growth and, by extension, oil demand.

Meanwhile, optimism around US–China trade relations added further momentum. Senior officials from both sides held extended talks in Stockholm, with negotiations set to continue. Any breakthrough could help stabilise macroeconomic conditions and lift demand prospects for industrial fuels.

Geopolitical risk also re-emerged after US President Donald Trump issued an ultimatum to Russia, demanding concrete progress on ending the Ukraine war within “10 or 12 days” or risk expanded sanctions. The US also warned of penalties for nations continuing to purchase Russian crude, raising the spectre of further supply disruptions.

Written: Aiman Haikal