Oil prices extended their rally for a fourth consecutive session on Thursday amid rising fears of global supply shortages and escalating geopolitical tensions. Investors reacted to U.S. President Donald Trump’s push for a rapid resolution to the war in Ukraine and threats of heavy tariffs on nations purchasing Russian crude.
Brent crude futures for September delivery, expiring Thursday, rose 0.4% to $73.51 per barrel by 0028 GMT. The more active October Brent contract gained 0.4% to $72.76. U.S. West Texas Intermediate (WTI) September crude rose 0.5% to $70.37. Both benchmarks closed 1% higher in the previous session.
Market sentiment was bolstered by Trump’s comments that secondary tariffs of up to 100% could be imposed on countries importing Russian oil unless Moscow shows progress toward ending the conflict within 10–12 days. The administration also warned China, the top buyer of Russian crude, of potential sanctions and confirmed a 25% tariff on U.S. imports from India starting Friday.
Meanwhile, the U.S. Treasury introduced new sanctions targeting over 115 Iran-linked individuals, firms, and vessels, intensifying its “maximum pressure” campaign following strikes on Tehran’s nuclear sites in June. China, also a major buyer of Iranian oil, is directly affected by the measures.
Despite supply concerns, U.S. crude inventories surged by 7.7 million barrels to 426.7 million last week, according to Energy Information Administration data, far exceeding expectations of a 1.3 million-barrel draw. Gasoline stocks, however, dropped by 2.7 million barrels, signaling robust summer driving demand. Analysts suggest the inventory build was offset by stronger gasoline consumption, leaving overall market sentiment neutral.
Global oil markets remain volatile as geopolitical tensions and tariff threats continue to influence pricing trends.