Oil Prices Rise, Threat to Sanction Russia Heightens Supply Risks
Oil prices rose in the global commodities markets on Wednesday due to concerns about potential supply interruptions caused by rising geopolitical tensions in the Middle East and the possibility of more stringent US sanctions on Russian oil.
Brent crude was trading at $66.85 per barrel, up 0.7% from the previous close of $66.38. The US benchmark West Texas Intermediate (WTI) rose 0.7% to $62.95.
The gains followed Israeli airstrikes on senior Hamas leaders in Doha, a move that Qatar denounced as “treacherous” and “state terrorism.”
Qatar, alongside Egypt and the US, has been mediating a Gaza cease-fire after Israel’s war killed more than 64,000 Palestinians since October 2023.
Geopolitical risks added to market jitters after Russia launched its largest aerial assault on Ukraine since the start of the war, setting fire to a government building in Kyiv.
Meanwhile, trade tensions between the US and India persisted. Trump announced Tuesday that negotiations continue to address barriers between the two countries, following Washington’s decision in August to impose tariffs of up to 50% on Indian imports in retaliation for New Delhi’s continued purchases of Russian oil.
Investors turned their attention to US inventory data, which pointed to weaker demand.
The American Petroleum Institute reported a crude stock build of 1.25 million barrels for the week ending September 5, compared with expectations for a 622,000-barrel rise.
Concerns over new sanctions on Russia further supported prices after Moscow launched its largest air assault on Ukraine since the war began, setting fire to a government building in Kyiv.
US President Donald Trump said Sunday he is prepared to implement a new phase of sanctions following the overnight attacks that killed four people and injured dozens.
The European Union’s sanctions envoy was also in Washington to discuss further measures with US officials.
Market watchers noted that additional restrictions could further tighten Russian crude supplies, lending support to oil prices. #Oil Prices Rise, Threat to Sanction Russia Heightens Supply Risks EIA Upgrades Brent Price Projection for 2025
