Oil Prices Rise on Ukraine Strikes, Supply Disruptions, U.S. Rate Cut Hopes

Global oil prices rose modestly following intensified Ukrainian drone strikes on key Russian energy infrastructure, including a nuclear power plant reactor, the Ust-Luga fuel export terminal, and the Novoshakhtinsk refinery, which processes about 100,000 barrels per day mainly for export. These attacks heightened concerns over potential supply disruptions, shifting crude price risks upward according to market analysts like Tony Sycamore of IG Markets. At the same time, expectations that the U.S. Federal Reserve might cut interest rates next month boosted investor optimism for global economic growth and fuel demand. Diplomatically, U.S. Vice President JD Vance indicated that Russia has made significant concessions in peace talks by abandoning plans to install a puppet regime in Kyiv and agreeing in principle to security guarantees for Ukraine’s territorial integrity. However, President Donald Trump maintained a firm stance, warning of fresh sanctions on Moscow if no meaningful progress toward peace is achieved within two weeks. This combination of geopolitical tensions and monetary policy signals has kept global energy markets on edge while supporting a cautiously bullish outlook.