Trump Threatens New Oil Sanctions on Moscow After Failed Peace Talks – Energy Markets Brace for Impact

Geopolitical tensions escalate as Trump administration targets Russia's energy sector.

Sanctions Strategy

Fresh oil restrictions loom after diplomatic efforts collapse—Moscow's crude exports face renewed pressure. The move signals hardened Western stance despite earlier negotiation attempts.

Market Reactions

Energy traders position for volatility while crypto markets show muted response—Bitcoin holds steady as traditional assets price in supply disruptions. Another reminder that digital gold shrugs off political theater while fiat currencies dance to sanction tunes.

Finance professionals note the familiar pattern: geopolitical shocks become portfolio opportunities. Meanwhile, oil traders will hedge with crypto—because nothing says stability like volatile assets backed by math rather than political promises.

Oil price jumps 2% after drone attack

Ahead of Trump tariffs, the price of oil is up 2% after a Ukrainian drone attack on a Russian port stopped loadings. This was more than enough to counteract worries about oversupply and lower US demand risks.

According to reports, oil loading operations had to stop overnight because of the drone attack on Primorsk, a port in the northwest of Russia that is one of the country’s biggest oil and fuel export hubs.

“Those attacks on Russian energy infrastructure have room to drag down Russian crude and refined product exports,” said UBS analyst Giovanni Staunovo. Also, SEB Research analyst Ole Hvalbye said, “Strong sanctions could potentially overshadow the underlying oversupply outlook.” 

Brent crude futures ROSE $1.02, or 1.5%, to $67.39 a barrel by 1328 GMT, and U.S. West Texas Intermediate crude gained $1.08, or 1.7%, to $63.45. The standards for Brent and WTI both went down by 1.7% and 2%, respectively.

Meanwhile, the International Energy Agency released its monthly report. It said that this year’s planned output increase by the OPEC+ group. It is made up of the Organization of the Petroleum Exporting Countries and its partners, such as Russia, which WOULD cause the world’s oil supply to rise faster than expected.

On the supply side, Adani Group, India’s biggest private port operator, has said that it won’t let tankers from Western countries into any of its ports. This could cut off Russia’s oil supplies.

 US tariff earnings make up less than 10% in August

As the summer ended, President Trump’s tariffs continued to bring in billions of dollars for the US. In August, customs taxes brought in about $29.5 billion.

The latest monthly report from the US Treasury Department, which came out Thursday afternoon, showed the final numbers for the month. They confirmed another record after July’s total of $27.7 billion.

Since June’s total of $26.6 billion and May’s total of $22.2 billion, these new numbers are the most recent in a line of steps upward. With Tuesday’s report, the overall income for the fiscal year now stands at about $165.2 billion. The fiscal year for the government ends on September 30.

The news release from Tuesday also said that the government made more than $344 billion in August. This means that tariff earnings made up less than 10% of the total. However, the government spent even more money that month. That went over $689 billion, leaving a $345 billion gap every month.

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