Brent crude settled at $67.22, down $1.58 (−2.3%), while U.S. West Texas Intermediate (WTI) closed at $63.25, off $1.55 (−2.4%). The drop came a day after Brent hit its highest level since early August on supply risk concerns.
Analysts said sentiment remains fragile given the mix of geopolitical and trade uncertainty. “With the Ukrainian conflict and tariff war both unresolved, investors are reluctant to commit to either direction on a prolonged basis,” noted Tamas Varga of PVM Oil Associates, who suggested Brent may trade in a $65–$74 range near term.
The selloff followed Monday’s gains, which were driven by Ukrainian strikes on Russian energy infrastructure and the prospect of further U.S. sanctions on Moscow. While those attacks disrupted refinery operations and created localized fuel shortages inside Russia, they also freed up more crude for export: sources said Russia revised up its August crude shipment plan from western ports by 200,000 barrels per day.
President Donald Trump has again warned of sanctions on Russia if peace talks do not advance within two weeks. At the same time, U.S. and Russian officials have reportedly discussed potential energy deals on the sidelines of negotiations, adding to the uncertainty over how sanctions may be applied.
Trade tensions added another bearish layer. Washington is weighing whether to double tariffs on Indian exports to 50%, one of the steepest duties imposed in recent years, in retaliation for India’s continued purchases of Russian oil. Analysts at Ritterbusch and Associates warned such a move would further restrict Russian export flows already hampered by Ukrainian attacks on refineries.