Oil Prices Climb as U.S. Criticizes India’s Purchases of Russian Crude

Oil prices edged higher on Monday after a senior White House official warned that India’s continued purchases of Russian crude were helping fund Moscow’s war effort in Ukraine.

Brent crude futures rose 30 cents, or 0.46 percent, to $66.15 a barrel by 9:29 a.m. Saudi time, while U.S. West Texas Intermediate (WTI) gained 39 cents, or 0.62 percent, to trade at $63.19 a barrel.

The rise followed sharp comments from White House trade adviser Peter Navarro, who argued in the Financial Times that India’s role as a major buyer of Russian oil was undermining Washington’s strategic partnership with New Delhi. “India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro wrote, adding that if India wants to be treated as a U.S. partner, it “needs to start acting like one.”

Analysts said the market’s swift rebound highlighted how fragile investor sentiment remains. “Any sign of Washington tightening its stance on India’s Russian oil purchases reintroduces a risk premium,” noted Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. She added that postponed U.S.-India trade talks and sharper rhetoric have revived concerns that global energy flows remain vulnerable to geopolitical tensions, even as discussions on a possible peace deal in Ukraine continue.

Earlier in the day, prices had slipped during Asian trading after U.S. President Donald Trump met Russian President Vladimir Putin in Alaska. The two leaders signaled alignment on pursuing a comprehensive peace deal rather than an immediate ceasefire in Ukraine. Trump is scheduled to meet Ukrainian President Volodymyr Zelensky and European leaders later Monday as part of efforts to push Kyiv toward a swift agreement to end the nearly four-year conflict.

Market watchers say uncertainty around peace negotiations continues to weigh on the outlook. “The status quo remains largely intact for now,” said Helima Croft, an analyst at RBC Capital. “Moscow is unlikely to scale back territorial demands, while Ukraine and some European leaders will resist land-for-peace proposals.”

Trump, meanwhile, sought to calm concerns about potential trade retaliation. He said on Friday that he was not yet considering tariffs on countries such as China for buying Russian oil, though he left open the possibility of action “in two or three weeks.” China remains the largest buyer of Russian crude, followed closely by India.

Beyond geopolitics, investors are awaiting guidance from Federal Reserve Chair Jerome Powell at the annual Jackson Hole conference this week. Markets are looking for signals on the timing of potential interest rate cuts, which could influence both energy demand and global equity markets. “It’s likely he will remain noncommittal and data-dependent, especially with one more payroll and CPI report due before the September 17 FOMC meeting,” said IG market analyst Tony Sycamore.