Oil rally pauses as markets weigh Trump's ultimatum to Russia
Most-active Brent crude futures rose 1 cent, or 0.01%, to $71.69 a barrel by 0633 GMT, while U.S. West Texas Intermediate crude fell 2 cents, or 0.03%, to $69.19 a barrel.
The Brent crude September contract expiring on Wednesday was up 5 cents at $72.56 per barrel.
Both contracts had settled on Tuesday at their highest since June 20.
On Tuesday, Trump said he would start imposing measures on Russia, such as secondary tariffs of 100% on trading partners, if it did not make progress on ending the war within 10 to 12 days, moving up from an earlier 50-day deadline.
"The $4 to $5 per barrel of supply-risk premium injected in recent days can be expected to be sustained, unless Putin makes a conciliatory move," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
The United States had warned China, the largest buyer of Russian oil, it could face huge tariffs if it kept buying, Treasury Secretary Scott Bessent told a news conference in Stockholm, where the U.S. was holding trade talks with the EU.
JP Morgan analysts said in a note that while China was not likely to comply with U.S. sanctions, India has signalled it would do so, putting at risk 2.3 million barrels per day of Russian oil exports.
The United States and the European Union averted a trade war with a deal for 15% U.S. tariffs on European imports, easing concerns about the impact of trade tensions on economic growth and offering support to oil prices.
In Venezuela, foreign partners of state oil company PDVSA are still waiting for U.S. authorisation to operate in the sanctioned country after talks last week, which could return some supply to the market, so easing pressure for prices to rise.
"The oil market is keeping an eye on the U.S. trade deals and talks, and on the Fed, but those are marginal influences on sentiment," Hari added.
Despite President Donald Trump's objections, the U.S. Federal Reserve is expected to hold interest rates steady at its policy meeting later on Wednesday.
On Tuesday, the International Monetary Fund raised global growth forecasts slightly for 2025 and 2026, but warned the world economy faced major risks, such as a rebound in tariff rates, geopolitical tension and larger fiscal deficits. - Reuters
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Borneo Post
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- Borneo Post
Trump deploys nuclear submarines in row with Russia
The US Navy's USS Minnesota (SSN-783), a Virginia-class fast attack submarine, sails in waters off the coast of Western Australia on March 16, 2025. – AFP file photo WASHINGTON (Aug 2): US President Donald Trump ordered the deployment of two nuclear submarines Friday in an extraordinary escalation of what had been an online war of words with a Russian official over Ukraine and tariffs. Trump and Dmitry Medvedev, the deputy chairman of Russia's security council, have been sparring on social media for days. Trump's post on his Truth Social platform abruptly took that spat into the very real — and rarely publicized — sphere of nuclear forces. 'Based on the highly provocative statements,' Trump said he had 'ordered two Nuclear Submarines to be positioned in the appropriate regions, just in case these foolish and inflammatory statements are more than just that.' 'Words are very important, and can often lead to unintended consequences, I hope this will not be one of those instances,' the 79-year-old Republican posted. Trump did not say in his post whether he meant nuclear-powered or nuclear-armed submarines. He also did not elaborate on the exact deployment locations, which are kept secret by the US military. But in an interview with Newsmax that aired Friday night, Trump said the submarines were 'closer to Russia.' 'We always want to be ready. And so I have sent to the region two nuclear submarines,' he said. 'I just want to make sure that his words are only words and nothing more than that.' Trump's remarks came hours after Russian President Vladimir Putin said Moscow had started mass producing its hypersonic nuclear-capable Oreshnik missile, and could deploy them to Belarus, a close Russian ally neighbouring Ukraine, by year-end. The nuclear sabre-rattling came against the backdrop of a deadline set by Trump for the end of next week for Russia to take steps to ending the Ukraine war or face unspecified new sanctions. Despite the pressure from Washington, Russia's onslaught against its pro-Western neighbor continues to unfold at full bore. An AFP analysis Friday showed that Russian forces had launched a record number of drones at Ukraine in July. Russian attacks have killed hundreds of Ukrainian civilians since June. A combined missile and drone attack on the Ukrainian capital Kyiv early Thursday killed 31 people, rescuers said. Putin, who has consistently rejected calls for a ceasefire, said Friday that he wants peace but that his demands for ending his nearly three-and-a-half year invasion were 'unchanged'. Those demands include that Ukraine abandon territory and end ambitions to join NATO. Putin, speaking alongside Belarusian President Alexander Lukashenko, said Belarusian and Russian specialists 'have chosen a place for future positions' of the Oreshnik missiles. 'Work is now underway to prepare these positions. So, most likely, we will close this issue by the end of the year,' he added. – Insults, nuclear rhetoric – The United States and Russia control the vast majority of the world's nuclear weaponry, and Washington keeps nuclear-armed submarines on permanent patrol as part of its so-called nuclear triad of land, sea and air-launched weapons. Trump told Newsmax that Medvedev's 'nuclear' reference prompted him to reposition US nuclear submarines. 'When you mention the word 'nuclear'… my eyes light up. And I say, we better be careful, because it's the ultimate threat,' Trump said in the interview. Medvedev had criticised Trump on his Telegram account Thursday and alluded to the 'fabled 'Dead Hand'' — a reference to a highly secret automated system put in place during the Cold War to control the country's nuclear weapons. This came after Trump had lashed out at what he called the 'dead economies' of Russia and India. Medvedev had also harshly criticized Trump's threat of new sanctions against Russia over its war in Ukraine. Accusing Trump of 'playing the ultimatum game,' he posted Monday on X that Trump 'should remember' that Russia is a formidable force. Trump responded by calling Medvedev 'the failed former President of Russia, who thinks he's still President.' Medvedev should 'watch his words,' Trump posted at midnight in Washington on Wednesday. 'He's entering very dangerous territory!' Medvedev is a vocal proponent of Russia's war — and generally antagonistic to relations with the West. He served as president between 2008-2012, effectively acting as a placeholder for Putin, who was able to circumvent constitutional term limits and remain in de facto power. The one-time reformer has rebranded over the years as an avid online troller, touting often extreme versions of official Kremlin nationalist messaging. But his influence within the Russian political system remains limited. In Kyiv on Friday, residents held a day of mourning for the 31 people, including five children, killed the day before, most of whom were in a nine-storey apartment block torn open by a missile. Ukrainian President Volodymyr Zelensky said only Putin could end the war and renewed his call for a meeting between the two leaders. 'The United States has proposed this. Ukraine has supported it. What is needed is Russia's readiness,' he wrote on X. – AFP donald trump nuclear submarine Russia Vladimir Putin
The Star
an hour ago
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India aghast at Trump's ‘dead' economy jibe, 25% tariffs
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The Star
an hour ago
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A defining week for Anwar Ibrahim's leadership
KUALA LUMPUR: It has certainly been a defining week for Prime Minister Datuk Seri Anwar Ibrahim as he notched double wins at the diplomatic and economic fronts, which even his opponents would find difficult to fault. He has certainly been in top form as he brokered a ceasefire between Thailand and Cambodia, orchestrating a diplomatic breakthrough, and then went on to make a call to United States President Donald Trump at 6.50 am. Anwar received plenty of messages from world leaders congratulating him on the handling of the potentially dangerous conflict between two neighbouring countries. It was a huge test for him as the Chair of Asean, but he pulled off magnificently as he brought the leaders of Thailand and Cambodia to Kuala Lumpur for a dialogue. He also made sure that officials from the US and China, the two important players in the region, were present to observe the talks. It is also evident that Malaysia's neutral posture of not taking sides has shown positive results, as that brought the two countries, locked in conflict, to the negotiating table. Trump himself reportedly intervened in the ceasefire negotiations by threatening both parties with heavy tariffs, but Malaysia's central role in mediating the agreement gave it diplomatic capital. At the same time, Malaysia scored a much-needed economic reprieve after the US agreed to scale back steep tariffs that had been threatening Malaysia's export-driven economy. At one point, Washington had threatened Malaysia with reciprocal tariffs of up to 25% in retaliation for what it claimed were unfair trade practices and currency. This week, the White House agreed to lower the rate to 19 per cent, offering breathing room to Malaysia's key sectors, especially electronics and palm oil. The sound of relief could be heard across the nation. Without doubt, Anwar was properly prepared by officials for his telephone conversation with Trump. But as many world leaders would know, an element of uncertainty can also be expected when dealing with Trump, as some US allies have ended up with high tariffs. Both cases, which Anwar handled well, demonstrated strategic diplomacy which was carried out with precision and the personal charm offensive, which Anwar is good at. By now, world leaders would have watched how Anwar has the ability to lift up the phone to call his counterparts. The world will certainly now see that there is value in Malaysia as a stabilising force and an economic partner. The week has not just been a personal success for Anwar and his government, but as one analyst put it, they are a reminder that middle powers like Malaysia can shape outcomes when they choose engagement over posturing. Thai veteran journalist Kavi Chongkittavorn wrote that Anwar has now positioned himself as a peacemaker. "Asean is doing a somersault. It just needs decisive leadership,' he said, pointing out that Anwar got the US and China to be present, which was another coup, as "both superpowers rarely collaborate on anything these days. Yet both sent envoys to support the Asean Chair's initiative.' These successes are not just wins for Anwar's government; they are reminders that middle powers like Malaysia can shape outcomes when they choose engagement over posturing. Writing in the Thai PBS World, he described that on the regional stage, "PMX just had his finest hours.'' On the economic front, Malaysia has ended up having the same 19% tariff as Indonesia and the Philippines. However, in Jakarta and Manila, there has been reported unhappiness that they have given in too much to Trump. Malaysia stood its ground that it would not allow the red lines to be crossed, particularly on its Bumiputera policy during negotiations. To the protestors who turned up by the thousands calling on Anwar to step down, they may not understand headlines like tariffs or ceasefires, but this week's developments demonstrated the importance of leadership. * Datuk Seri Wong Chun Wai is a National Journalism Laureate and chairman of the Malaysian National News Agency (Bernama).
