Oil Rallies 2% as Trump Tightens Russia Deadline and EU Seals U.S. Energy Deal

Oil prices advanced about 2% on Monday after U.S. President Donald Trump said he was shortening the timeline he had given Russia to end its war in Ukraine to roughly 10–12 days, warning that Moscow could face additional sanctions if it fails to comply. Brent crude settled at $70.04 a barrel, up $1.60, while U.S. West Texas Intermediate gained $1.55 to $66.71. Traders said the prospect of tighter restrictions on Russian exports intensified worries over near-term supply, supporting futures across the curve. Sentiment was further buoyed by a framework trade accord between Washington and the European Union that imposes a 15% tariff on most EU goods but includes an EU pledge to purchase about $750 billion of U.S. oil and natural gas in the coming years. Analysts said the deal could shift European demand away from Russian barrels and reinforce expectations of tighter global balances. On the supply side, an OPEC+ monitoring panel meeting on Monday underscored the need for members to meet existing production curbs ahead of talks this weekend on potential output increases for September. ING forecasts the group will complete the phased return of 2.2 million barrels a day of voluntary cuts by the end of the third quarter.