Oil’s Rollercoaster: Trade Peace, War Fears Fuel Price Hikes
Global Crude Prices Edge Up as US-EU Tariff Deadline Extended and Ukraine Conflict Escalates
Oil prices rose in the global commodity market on Monday as investors reacted to US President Donald Trump’s decision to extend a deadline for imposing steep tariffs on the EU. The crude oil price upticks across grades were also supported by ongoing geopolitical tensions stemming from the Russia-Ukraine conflict.
International benchmark Brent crude increased by around 0.01%, trading at $64.46 per barrel. Similarly, US benchmark West Texas Intermediate (WTI) rose by about 0.2%, reaching $61.69 per barrel, compared to $61.56 in the prior session.
The White House confirmed Trump’s decision to postpone the imposition of a 50% tariff on EU imports until July 9, following a call with European Commission President Ursula von der Leyen.
The EU leader also confirmed the discussion, saying Brussels is prepared to act “swiftly and decisively” in trade talks. “To reach a good deal, we would need the time until July 9,” she said.
Trump had earlier threatened to enact the tariffs beginning June 1, citing what he described as unfair trade practices harming US companies. The delay signals a temporary de-escalation in US-EU trade tensions, although divisions remain over tariffs, subsidies, and regulatory policies.
Analysts say the decision is supportive of oil prices, as it boosts global economic sentiment and reinforces energy demand expectations. Meanwhile, intensifying conflict in Ukraine continues to elevate oil market risk premiums.
At least 12 people were killed and more than 60 injured early Sunday following a second consecutive night of large-scale Russian drone attacks, Ukrainian authorities said.
Ukraine’s Air Force also reported intercepting 266 of 298 drones launched by Russia, along with 47 missiles. The Russian Defense Ministry, in a separate statement, claimed it had carried out a “massive” strike targeting Ukrainian military-industrial facilities and strategic communications centers.
The renewed escalation in violence adds to supply concerns, reinforcing upward pressure on crude prices.
However, some market participants remain cautious amid persistent fears of a supply glut. The OPEC+ alliance—comprising OPEC members and other non-OPEC producers—is set to meet on June 1, where a potential output increase might be discussed.
Credit: Market Force Africa
