Oil Prices Plummet as Trump and Putin Plan Summit

Oil prices suffered their steepest weekly losses since late June, with Brent crude falling 4.4% and West Texas Intermediate dropping 5.1%. The decline was driven by a combination of new U.S. import tariffs implemented on Thursday and an OPEC+ agreement to increase production by 547,000 barrels per day starting September 1. The International Energy Agency further pressured markets by warning of a global oil surplus by the fourth quarter of 2025.

Donald Trump intensified economic pressure by imposing 50% tariffs on Indian exports and threatening further levies on China and India if they continue purchasing Russian crude. Amidst these trade tensions, the Kremlin announced that Trump and Russian President Vladimir Putin will meet as early as next week to discuss a diplomatic resolution to the war in Ukraine. Reports suggest a potential deal where Russia would halt offensives in the Kherson and Zaporizhzhia regions in exchange for Ukraine ceding Crimea and the eastern Donbas area.

Market analysts noted that a peace agreement could lead to the lifting of sanctions on Russian energy exports, further increasing global supply. In a separate move to influence monetary policy, Trump announced the nomination of Stephen Miran to a vacant seat at the Federal Reserve.