US-EU Trade Deal, Russia Tensions Boost Oil Prices

Oil prices rose by about 2% after President Trump and European Commission President Ursula von der Leyen announced a major US-EU trade agreement featuring a $750 billion EU commitment to purchase US energy products and a 15% US tariff on most EU goods—lower than previously threatened rates. The deal aims to boost US energy exports and reduce EU reliance on Russian energy. President Trump also issued a new, shorter deadline for Russia to end the Ukraine war, warning of steep tariffs and sanctions, which increased market concerns over supply disruptions. Analysts cautioned that aggressive tariffs on Russian oil could trigger a supply shock, especially given global reliance on Russian exports and limited OPEC spare capacity. Despite these developments, OPEC+ is expected to keep output steady, while weak demand and oversupply continue to pressure markets. Investors are also watching US-China trade talks and upcoming Federal Reserve decisions for further market direction.