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Oil markets remained broadly stable on Wednesday after a sharp rally in the previous session, as traders assessed the potential fallout from US President Donald Trump’s accelerated ultimatum to Moscow over the war in Ukraine.

Brent crude futures inched up 14 cents, or 0.19 per cent, to trade at $72.65 a barrel in early Asian trading, while US West Texas Intermediate (WTI) edged higher by 2 cents, or 0.03 per cent, to $69.23, reported Reuters. Both benchmarks had closed Tuesday at their strongest levels since 20 June, gaining more than 3 per cent in that session.

Trump’s Deadline and Market Repercussions

Market sentiment shifted dramatically after President Trump shortened his timeline for Russia to show progress in ending the Ukraine conflict. Speaking on Tuesday, he warned of “100 per cent secondary tariffs” on Russian trading partners if Moscow failed to move toward peace within 10 to 12 days – a significant step up from his earlier 50-day deadline.

Analysts at ING noted, “Effective secondary 100 per cent tariffs would lead to a dramatic shift in the oil market. A number of key buyers of Russian oil would likely be reluctant to continue purchases, particularly large US trading partners.” They added that while the move might give OPEC+ the flexibility to ease some supply cuts, a “worst-case scenario” would still leave the oil market undersupplied.

Global Players and Potential Supply Shifts

The warning comes as Washington pressures China, Russia’s biggest oil customer, to scale back purchases. Treasury Secretary Scott Bessent said in Stockholm that Beijing could face major tariffs if it continued importing Russian crude. JP Morgan analysts believe China is unlikely to comply with US sanctions, but India has signalled it would, which could put as much as 2.3 million barrels per day of Russian exports at risk.

Meanwhile, the US and EU managed to sidestep a trade war with an agreement that included 15 per cent American tariffs on European imports, helping support oil demand expectations. In Venezuela, foreign partners of state oil firm PDVSA are still awaiting US authorisations to resume operations. If approved, some Venezuelan supply could re-enter the market, tempering price pressures, but for now, oil remains caught between geopolitical risks and fragile supply-demand balances.