On July 31, 2025, global oil prices experienced a significant increase due to escalating geopolitical tensions and recent sanctions. Brent crude for September delivery rose by 27 cents to $73.51 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by 37 cents to $70.37 per barrel. These gains were driven by concerns over potential supply shortages stemming from geopolitical developments.
U.S. President Donald Trump has intensified his stance on the conflict in Ukraine, threatening to impose 100% secondary tariffs on countries continuing to purchase Russian oil unless there is progress towards ending the conflict within 10–12 days. This aggressive approach has heightened market anxiety about potential disruptions to Russian oil supplies. Additionally, the U.S. Treasury Department announced new sanctions targeting over 115 individuals and entities linked to Iran, further contributing to market volatility.
Despite a surprising 7.7 million-barrel increase in U.S. crude inventories due to decreased exports, a greater-than-expected draw in gasoline stocks signaled strong seasonal demand, maintaining market balance. Analysts note that the potential for tighter supply from geopolitical moves continues to spur investor interest.
These developments underscore the complex interplay of geopolitical factors influencing the oil market, highlighting the immediate impact of political decisions on global energy prices.