Oil Prices Fall 2% Amid Tariff Concerns and Russian Supply Risks
New York – August 26, 2025 | Web Desk
Global oil prices fell sharply on Tuesday, reversing gains from the previous session, as investors weighed fresh uncertainty surrounding U.S. trade tariffs, the Ukraine conflict, and potential disruptions to Russian energy exports.
Brent crude dropped $1.58, or 2.3%, to $67.22 a barrel, while West Texas Intermediate (WTI) lost $1.55, or 2.4%, to $63.25. Both benchmarks had touched near three-week highs on Monday before sliding back.
“Given the level of uncertainty in the market — from the Ukraine war to the evolving tariff disputes — traders are reluctant to commit to long-term positions,” said Tamas Varga of PVM Oil Associates, predicting Brent prices may remain locked between $65 and $74 in the near term.

The pullback came after Ukraine’s latest strikes on Russian energy infrastructure disrupted oil refining and exports, creating gasoline shortages inside Russia and raising global supply fears. At the same time, Moscow increased its August crude export plan by 200,000 barrels per day after refinery slowdowns freed up more oil for shipment.
Adding further pressure, U.S. President Donald Trump renewed his warning of tougher sanctions on Russia if no peace progress is made within two weeks. Meanwhile, discussions between Washington and Moscow on potential energy deals have reportedly continued on the sidelines of Ukraine peace talks.
Markets are also watching Washington’s growing trade rift with India. Analysts at Ritterbusch and Associates warned that U.S. duties on Indian exports could be doubled to 50%, one of the steepest tariff hikes in years, potentially complicating global oil trade flows already strained by war.
Political risks added to market jitters after Trump announced the removal of Federal Reserve Governor Lisa Cook over alleged improprieties, sparking concerns about central bank independence.
With global markets juggling geopolitical tensions, sanctions threats, and tariff wars, analysts expect oil prices to stay volatile in the days ahead.