FX.co ★ Oil Rises on Shorter US Deadline for Russia

WTI crude oil futures rose to approximately $66.8 per barrel on Tuesday, reaching their highest point in over a week, triggered by renewed concerns regarding the potential tightening of global oil supplies following President Donald Trump's decision to expedite the deadline for Russia to broker a peace deal with Ukraine. On Monday, Trump stated that Russia has now been given a timeframe of approximately 10 to 12 days to agree to a ceasefire, or it risks facing potential "secondary sanctions." This marks a reduction from the 50-day deadline he had proposed earlier this month. The situation is further intensified by the European Union's new sanctions package against Moscow that includes a lowered price cap on Russian oil, additional banking restrictions, and a prohibition on a major Indian oil refinery. Additionally, prices are being bolstered by the US and EU's agreement on a comprehensive trade deal on Sunday, which introduces a 15% tariff on the majority of European goods. This development comes in the wake of recent trade announcements, including an agreement with Japan, which have eased concerns that tariffs might hinder global economic growth and affect energy demand. Market participants are now closely monitoring the ongoing US-China discussions, with the anticipation of a potential 90-day extension on the tariff suspension.