Rising Oil Prices Amid Assessment of the Implications of Trump's Threat to Impose Tariffs on Russian Crude Importers

SadaNews - Oil prices have risen for the third consecutive session as investors continue to assess the implications of U.S. President Donald Trump's threats to impose tariffs on importers of Russian crude, in addition to the implications of the Israeli attack in Doha that targeted leaders of the "Hamas" movement.

Brent crude traded near $67 per barrel after closing up 0.6% on Tuesday, while West Texas Intermediate rose above $63.

Trump told European Union officials that he is prepared to impose new tariffs on India and China to pressure Russia to negotiate over Ukraine – but only if the EU takes similar actions.

Diverse Positions... and Renewed Geopolitical Risks

This U.S. proposal is considered a challenge to energy policies in Europe, where countries like Hungary still oppose stricter sanctions on Russian energy. While the U.S. has imposed tariffs on India due to its oil dealings with Moscow, it has so far avoided targeting China.

At the same time, the Israeli attack in Doha – the first of its kind since the conflict began nearly two years ago – has raised new fears of escalation in the Middle East, which produces about a third of the world's crude supply.

This attack could disrupt peace talks led by Washington between Israel and Hamas, which were aimed at easing geopolitical tensions that typically add to the risk premium in oil prices. Israel has fully claimed responsibility for the attack, while Trump distanced himself from the event.

Limited Rise Despite Concerns... and Gradual Return of Supplies

Despite the tensions, oil prices have not seen significant jumps, as the spread between the nearest two Brent crude contracts (prompt spread) has decreased to 31 cents per barrel, compared to over two dollars two months ago. This decline indicates that the market is preparing for greater availability of supplies.

U.S. government reports predicted this week the start of an oil surplus during the current quarter – earlier than previous estimates.

For its part, the "OPEC+" organization agreed on Sunday to begin pumping additional oil quantities starting next month, but at a gradual and limited rate.