President Donald Trump escalated pressure on Moscow on Tuesday, declaring the United States would impose tariffs and sanctions on Russia within 10 days unless significant progress occurs toward ending the three-year Ukraine conflict.
Speaking aboard Air Force One, Trump confirmed he had shortened his initial 50-day deadline announced last month, telling reporters he received no response from Russian President Vladimir Putin. “We’re going to put on tariffs and the various things that you put on,” Trump stated, according to Reuters.
Will Trump’s Ultimatum Shift Oil Markets?
The ultimatum carries significant market implications as investors monitor potential disruptions to global oil supplies. Russia remains a major energy exporter despite existing sanctions, with crude oil futures showing volatility ahead of potential additional restrictions.
Trump dismissed concerns about the oil market impact, pledging to boost domestic production to offset any supply disruptions. “I don’t know if it’s going to affect Russia, because (Putin) wants to, obviously, probably keep the war going,” he said.
WTI crude oil futures hovered above $69 per barrel on Wednesday, while Brent crude traded around $72.50, with both benchmarks holding at five-week highs amid signs of tightening supply and resilient demand.
Energy-Related ETFs Saw Modest Fluctuation:
- iShares U.S. Oil & Gas Exploration & Production ETF IEO closed at $92.43 on Tuesday, up 0.91%, and edged slightly higher in after-hours trading to $92.50.
- United States Oil Fund USO jumped 3.41% to close at $79.80, before dipping 0.21% overnight to $79.63.
- ProShares Ultra Bloomberg Crude Oil UCO surged 5.42% to $26.28 at the close, holding steady overnight at $26.26.
Are China’s Tariffs The Next Global Shockwave?
Treasury Secretary Scott Bessent revealed during bilateral talks this week that he warned Chinese officials that Beijing could face high tariffs if Russian oil purchases continue. The secondary sanctions threat targets countries purchasing Russian exports, potentially affecting global commodity flows.
Can Trump’s Ultimatum Alter Russia’s Strategy?
The president’s frustration with Moscow’s ceasefire refusal marks a shift from his previous hesitation on sanctions implementation. Trump has previously touted his relationship with Putin but recently called him “absolutely crazy” following Russian airstrikes on Ukraine.
Former Russian President Dmitry Medvedev, a Putin ally, responded on X that Trump was playing “a game of ultimatums” that could escalate into U.S. involvement in war.
The 10-day deadline coincides with ongoing diplomatic tensions. Putin recently emphasized historical U.S.-Russia cooperation during the American independence and Civil War periods, telling Russian television the nations “have always had very good and special relations.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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