26.08.202518:39:46UTC+00Oil Retreats From 3-Week High on Geopolitical Tensions

WTI crude oil futures experienced a 2.4% decline, landing at $63.20 per barrel on Tuesday. This decrease followed a nearly three-week high seen in the previous session. Investors are currently weighing the impact of geopolitical risks and concerns about global demand. The dip mirrored a broader trend of risk aversion, as equity markets also faced downward pressure. Central to the direction of oil prices is the ongoing Ukraine conflict and its implications for Russian fuel supplies. Monday's uptick was fueled by fears of further disruptions after Ukraine's attack on Russian energy infrastructure, which suggested the possibility of stricter US sanctions and exacerbated fuel shortages within Russia. President Trump has issued a warning about new sanctions should peace talks falter, despite reports of behind-the-scenes negotiations on energy deals between US and Russian officials. Additionally, the US threat of imposing steep tariffs on Indian exports, due to its ongoing purchases of Russian crude, adds further complexity to global trade dynamics.