Brent crude oil rises to $70

Brent crude oil futures climbed over 2% to reach $70 per barrel on Monday, buoyed by renewed optimism surrounding global trade developments and geopolitical signals from the United States.

The rally was sparked in part by the announcement of a potential US-EU trade deal, with President Trump stating that the European Union had agreed to purchase $750 billion worth of U.S. energy products. While the specifics of the agreement remain vague, the prospect of increased transatlantic energy trade has bolstered market sentiment, especially among U.S. producers seeking to expand their export footprint.

In addition, President Trump made headlines with fresh comments on the ongoing conflict in Ukraine, suggesting he may shorten the current 50-day deadline given to Russia to agree to a ceasefire. Expressing frustration with President Putin’s inaction, Trump reiterated his threat to impose sweeping 100% tariffs on Russian exports if no resolution is reached.

These remarks have heightened geopolitical tensions, raising the risk of further supply disruptions from Russia, one of the world’s top oil exporters. As a result, traders bid up crude prices on fears that tighter sanctions could restrict global supply.

Despite the short-term bullish momentum, longer-term risks continue to weigh on the outlook. Trump’s increasingly aggressive trade rhetoric has stoked concerns about a potential slowdown in global economic growth, which could, in turn, dampen long-term energy demand.

Moreover, the market remains cautious ahead of the upcoming OPEC+ meeting, where the group is widely expected to raise its production target once again. Such a move would raise the specter of oversupply, especially if global demand falters under the pressure of high interest rates and weak industrial activity in key economies.

Meanwhile, diplomatic efforts are underway between the U.S. and China, as officials from both countries meet to discuss trade relations. There are growing signs that the existing tariff truce may be extended, which could offer some relief to global markets and support energy demand projections—particularly if it leads to more stable economic conditions in Asia.

Still, the oil market remains highly sensitive to policy shifts and diplomatic developments, and volatility is likely to persist as traders balance short-term geopolitical tailwinds against structural uncertainties.