WASHINGTON — Prices are going up on the global oil markets because of a strong mix of political and military events. On Tuesday, crude oil futures rose for the third day in a row. This was because U.S. President Donald Trump pushed the European Union to put high taxes on China and India, who are two of the biggest buyers of Russian oil. An unprecedented Israeli bombing in Doha, Qatar, had people even more worried about a bigger battle in the area, which helped the market rally.
In a conference call with David O’Sullivan, the EU sanctions ambassador, President Trump told the EU to put tariffs of up to 100% on China and India. The plan is meant to put pressure on Russian President Vladimir Putin to talk about ending the war in Ukraine. The U.S. official who talked about the secret talks indicated that Trump would only charge the same fees to the two countries if the EU countries did the same. This showed that he wanted a coordinated policy across the Atlantic.
This proposed plan is different from the EU’s existing approach, which has focused on isolating Russia with sanctions instead of tariffs on other countries. The U.S. previously put a 25% duty on Indian imports over the summer. This new plan would be a big step up for both India and China, who have been buying cheap Russian oil, which has been a lifeline for the Russian economy.
A new and important event in the Middle East also helped the oil market go up. Israel attacked Doha, the capital of Qatar, on Tuesday, going after top Hamas officials. This is the first time that Israel has attacked the Qatari capital since the crisis started almost two years ago. Israel has taken full responsibility for the attack, which might put a stop to ongoing U.S.-led peace talks between Israel and Hamas. This adds another level of geopolitical risk to crude prices. Even while President Trump has distanced himself from the attack, it has added to the market’s already high level of worry.
West Texas Intermediate (WTI) rose to around $63 a barrel in early Asian trading, while Brent crude finished above $66 on Tuesday.