Oil Prices Surge as Trump-Brokered Energy Truce Collapses

Global oil prices surged on Friday, with Brent crude surpassing $110 per barrel and U.S. West Texas Intermediate crossing $100. The spike follows a series of geopolitical escalations in the Middle East and Eastern Europe that have created severe supply uncertainties.

In Eastern Europe, a four-day energy truce negotiated by Donald Trump collapsed after Ukraine resumed attacks on Russian refineries, including the Ryazan plant. President Volodymyr Zelenskyy declared that Kyiv is abandoning the ceasefire, alleging that Russia had already violated the agreement. The collapse sparked a public rift, with Trump calling the attacks a "disgrace."

To combat inflation before the November 3 midterm elections, Trump eased U.S. sanctions on Russia's shadow fleet to encourage the release of diesel into global markets, though damaged infrastructure has prevented any fuel from arriving. The Trump administration is also considering using the Defense Production Act to fund U.S. refinery expansions. Meanwhile, the International Energy Agency agreed to release over 20 million barrels of fuel to stabilize markets.

In the Middle East, the Islamic Revolutionary Guard Corps increased attacks on tankers in the Strait of Hormuz in response to a U.S. blockade of Iranian ports. Simultaneously, Houthi rebels caused extensive damage to Saudi Aramco's Dhahran headquarters and launched missile strikes against a presidential palace complex in Aden, Yemen.