Oil prices rise as hopes for Ukraine ceasefire fade

*Stalled Ukraine ceasefire; US sanctions on Iran; and trade disputes fuel global oil market volatility

Oil prices gained upward momentum on Friday as the prospect of a temporary ceasefire in Ukraine dimmed and concerns over global oil supply increased.

The international benchmark, Brent crude, increased by 0.7% trading at $70.26 per barrel at 10.40 a.m. local time (0740 GMT), up from $69.77 at the previous session’s close.

The US benchmark, West Texas Intermediate (WTI) rose by 0.8%, settling at $67.02 per barrel, compared to its prior session close of $66.51.

Russian President Vladimir Putin responded to a journalist’s question regarding the US proposal for a 30-day emergency ceasefire in Ukraine on Thursday, stating that Russia supports talks on a 30-day Ukraine ceasefire but any agreement must contribute to long-term peace and address the underlying causes of the crisis.

Ukrainian President Volodymyr Zelenskyy responded on X, suggesting that Putin was preparing to reject the US ceasefire proposal.

‘We now have all heard…Putin’s very predictable, very manipulative words in response to the idea of a ceasefire,’ Zelensky wrote, calling for increased sanctions to pressure Russia.

Fading hopes for a near-term peace deal have also dampened expectations of increased Russian energy supply.

Further exacerbating market concerns, the US administration has imposed new sanctions on Iran’s oil exports.

In a statement on Thursday, the US Treasury Department announced that Iranian Petroleum Minister Mohsen Paknejad was added to the sanctions list. Several companies operating in China, India, and other nations that own or operate vessels transporting Iranian oil were also sanctioned.

The measures target Iran’s so-called ‘shadow fleet,’ used to ship oil to China, with Washington reaffirming its commitment to reducing Iranian oil exports to zero.

Meanwhile, global demand concerns are deepening as US President Donald Trump escalates trade tensions with the EU.

Trump has threatened to impose a 200% tariff on all alcoholic beverages imported from the EU unless Brussels swiftly removes a 50% tariff on American whiskey.

Analysts warn that retaliatory tariffs could slow economic growth in the short term, dampening energy demand, while prolonged trade conflicts may disrupt global commerce.

Despite the recent price rise, concerns over slowing global oil demand growth and a potential supply glut continue to limit gains.

In its latest oil market report, the International Energy Agency revised its global oil demand growth forecast downward by 70,000 barrels per day, now projecting an increase of 1.3 million barrels per day for the year.

The agency expects 60% of this demand growth to come from Asia while highlighting the risk of oversupply in the market.

==== Anadolu Agency ====