Oil Prices Stabilize After Rise Amid Trump's Threats to Impose Sanctions on India

SadaNews - Oil prices stabilized after closing at their highest levels in nearly six weeks, following US President Donald Trump's threat to impose sanctions on India for purchasing Russian crude, and his administration tightening restrictions on supplies coming from Iran.

West Texas Intermediate crude traded above $70 a barrel after rising more than 7% since the beginning of the week, while Brent crude remained near $73 a barrel on Wednesday.

The US President stated his intention to impose tariffs on Indian exports, in addition to "sanctions" due to their energy purchases from Russia, before later adding that talks are still ongoing between the two sides.

At the same time, the United States imposed the most comprehensive package of sanctions related to Iran in seven years.

Concerns About Supplies

These measures against Tehran and India raised concerns about further tightening of supplies, with the potential impact extending to products like diesel, as oil heads toward its largest monthly gains since September 2023.

The market is closely monitoring the deadline set by Washington for concluding more trade agreements by August 1, with Trump also announcing a 15% tariff on South Korean goods.

The "OPEC+" alliance is set to hold a meeting over the weekend to review the supply policy for September, where most observers expect another production increase to be approved.

Yesterday, US President Donald Trump imposed a 25% tariff on India, in addition to an unspecified "fine," in response to New Delhi's purchase of weapons and oil from Russia.

This measure is set to take effect on Friday, along with additional tariffs that could reach up to 50%, starting on the same day, as disclosed by Trump on his social media platform "Truth Social."

In a separate post, Trump stated that the deadline set for August 1 "remains firm and will not be extended."

He had previously extended this deadline several times since first announcing what he calls "reciprocal tariffs" for early April, with basic rates set at 10%.

Trump said, "Remember that it is true that India is our friend, but we have conducted relatively few trade exchanges with them over the years because their tariffs are extremely high, among the highest in the world, and they have non-tariff barriers that are more severe and loathed than any other country."

He noted that India "has always purchased the vast majority of its military equipment from Russia and is the largest energy customer from Russia, along with China, at a time when everyone wants Russia to stop the killing in Ukraine."

These measures come as the 79-year-old Republican President announced his intention to tighten American pressure on Moscow to stop the fighting in Ukraine and negotiate a peace agreement.