Oil jumped over 3% on geopolitical tensions and trade optimism

Crude oil prices surged more than 3% on Tuesday, buoyed by escalating geopolitical risks and signs of easing trade tensions between major global economies.

Brent crude futures settled $2.47, or 3.5%, higher at $72.51 a barrel, 

WTI gained $2.50, or 3.7%, to close at $69.21—both benchmarks hitting their highest levels since 20 June.

The rally was driven in part by the US government’s renewed pressure on Russia. The White House warned that tariffs and other punitive measures would be imposed within 10 days unless Russia demonstrated concrete progress in ending the war in Ukraine while threatening secondary tariffs on buyers of Russian oil.

Meanwhile, a limited trade deal between the US and EU offered relief to markets, avoiding a full-scale trade conflict. Although the deal includes a 15% tariff on most EU goods, it also outlines $750 billion in projected EU energy purchases from the US—an ambitious target widely viewed as unrealistic. EU corporates also pledged $600 billion in US investments during Trump’s term.

Written: Aiman Haikal