Oil Prices Soar on Trump’s India Tariff Threats
(MENAFN) Oil prices climbed sharply on Wednesday, driven by concerns over supply disruptions after US President Donald Trump warned of tariffs targeting India for purchasing Russian oil.
By 10:44 a.m. local time (07:44 GMT), Brent crude, the global benchmark, was trading at $67.97 per barrel—an increase of 0.74% from the previous session’s close of $67.47.
Meanwhile, West Texas Intermediate (WTI), the key US benchmark, rose 0.72% to $65.04 per barrel, up from $64.57 in the prior session.
Steve Witkoff, President Trump’s special envoy, landed in Moscow to engage in discussions related to the Russia-Ukraine conflict, a Russian broadcaster reported.
Kremlin spokesperson Dmitry Peskov noted that a direct meeting between Witkoff and Russian President Vladimir Putin remains under consideration.
This diplomatic mission arrives as Trump threatens to enact harsh new sanctions on Russia, including 100% tariffs and secondary sanctions targeting countries trading with Moscow, should no meaningful progress be made toward ending the war.
The visit also precedes a looming Friday deadline set by Trump for Russia to agree to a ceasefire with Ukraine.
Trump has stated that his decision on sanctions will depend on the results of Witkoff’s talks in Russia.
On Sunday, the US president announced via social media his intent to increase tariffs on India, accusing the country of profiting from the resale of Russian oil.
Without elaborating on specifics or timing, Trump declared: "They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA."
Adding to the bullish sentiment, recent data revealed a significant drop in US crude inventories.
The American Petroleum Institute reported a 4.2 million barrel decline in US commercial crude stockpiles last week, indicating a rebound in demand within the world’s largest oil consumer.
The US Energy Information Administration is set to publish its official inventory figures later in the day.
Meanwhile, on Sunday, OPEC and allied producers (OPEC+) announced plans for eight member nations to collectively boost oil production by 547,000 barrels per day in September compared to August, aiming to reclaim market share on the global stage.
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