Oil prices rise on EU trade deal and US-China tariff truce talks
Brent crude futures rose 24 cents, or 0.34%, to $70.28 a barrel, while US West Texas Intermediate crude increased 22 cents, or 0.33%, to $66.93.
Both benchmarks had surged over 2% in the previous session, with Brent hitting its highest level since July 18.
The US-EU trade deal, which imposes a 15% tariff on most EU goods, avoided a full-scale trade war that could have disrupted nearly a third of global trade and weakened fuel demand forecasts.
Further supporting prices were reports of potential progress in US-China trade talks. Senior economic officials from both nations met for over five hours in Stockholm on Monday, with discussions set to continue on Tuesday.
Meanwhile, geopolitical tensions added to market volatility.
US President Donald Trump issued a new 10 to 12-day deadline for Russia to show progress in ending the Ukraine war or face sanctions.
Trump warned of penalties on Russia and buyers of its oil exports if no progress is made.
'Trump's comments reignited fears that Russia's oil flows would be impacted,' said ANZ senior commodity strategist Daniel Hynes.
He noted that the EU's latest sanctions, including a lower price cap on Russian crude and restrictions on refined products, also contributed to supply concerns. - Reuters
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The Star
an hour ago
- The Star
India aghast at Trump's ‘dead' economy jibe, 25% tariffs
NEW DELHI: Shock, dismay and angst swept across India as businesses, policymakers and citizens digested US President Donald Trump's sharp remarks and a surprise 25% tariff rate earlier this week. While Indian government officials weighed a response and business groups tallied the cost of the trade barrier, the local social media flared up with users protesting Trump's comments and criticising Indian Prime Minister Narendra Modi for not speaking up. It started with Trump saying that India's trade barriers were the "most strenuous and obnoxious,' in a Truth Social post July 30. He added the US may also impose a penalty for New Delhi's purchase of Russian weapons and energy. Less than a day later, he ripped into India again for aligning with Russia, calling them "dead economies' in another post. With no imminent trade deal, the 25% tariffs kicked in as of Friday. India is hardly alone in facing Trump's trade wrath - and not the subject to the very highest rates - but the news left business and political leaders wondering how to cope with the fallout. "Overnight, the US-India trade equation shifted from tense to turbulent,' said Akshat Garg, assistant vice president at Choice Wealth, a Mumbai based financial services firm. The levies "feel less like structured policy and more like a blunt-force political message.' Complicating the narrative around the India trade deal - or the lack of it - was the US pact with its traditional rival Pakistan that came through on the same day. As the US released rates across the world on Aug. 1, India's relative disadvantage to competitor exporting countries became more apparent, dampening moods and stoking tempers further. "The biggest blow is that Pakistan and Bangladesh got a better rate than us,' V. Elangovan, managing director at SNQS Internationals, an apparel maker in the south Indian manufacturing hub of Tirupur, told Bloomberg News. "We were expecting something in the 15 to 20% range.' India's annoyance can be traced back in part to Trump declaring himself the peacemaker that helped broker a ceasefire in the armed conflict between India and Pakistan in May. The move was seen as an effort to upstage Modi and put the two South Asian neighbours on an equal footing, despite India's larger military and economy. The events of this week have cemented that impression further in the eyes of some Indian observers. When the tariff rate news first dropped in late Wednesday evening in India, Ashish Kanodia recalls being "very disturbed.' A director at Kanodia Global, a closely held exporter that gets over 40% of its revenue from the US selling home fabrics to toys, the entrepreneur already has two of its largest US customers seeking discounts to make up for the levy. "The next six months are going to be difficult for everyone,' Kanodia said, adding that profit margins will be squeezed. If the pain continues for "months and months,' he said he'll have to start cutting his workforce. The US is India's largest trading partner, with the two-way trade between them at an estimated US$129.2 billion in 2024. Compared with India's 25%, Bangladesh was subjected to a 20% tariff, Vietnam got a 20% levy and Indonesia and Pakistan each received 19% duties. "We know that we have got a deal that is worse than other countries,' said Sabyasachi Ray, executive director at The Gem and Jewelry Export Promotion Council. "We will take it up with the government.' Trump's actions mark a 180-degree turn for New Delhi's hopes of preferential treatment over regional peers. It was among the first to engage Washington in trade talks in February, confident of hammering out a deal sooner than others. Trump had called India's Prime Minister Narendra Modi "my friend' in a Feb 14 post on X and the bond between the two countries "special.' India is now weighing options to placate the White House, including boosting US imports, Bloomberg News reported citing people familiar with the matter, and many hope that the bilateral relationship and the tariff rate can still be improved. "It is a storm in the India-US relationship at this moment but I think there's a good chance that it will go away,' Vivek Mishra, deputy director of the Strategic Studies Programme at Delhi based Observer Researcher Foundation, told Bloomberg News. Indian business and trade groups are supporting the government's stance on the deal as the negotiations for a US-India trade deal continue. Jewelry businesses "are worried but they are not panicking' because they hope a more favourable deal can be worked out, said Ray of the gems export body. "The negotiation that should be happening should be a win-win, not a win-lose.' The abrupt announcement by Trump over social media when negotiations with India were ongoing "seems like a knee-jerk reaction,' according to Rohit Kumar, founding partner at public policy research firm The Quantum Hub. "This appears to be a negotiating tactic aimed at unresolved discussion points,' Kumar said. - Bloomberg
The Star
an hour ago
- The Star
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).
Borneo Post
an hour ago
- Borneo Post
A defining week for Anwar Ibrahim's leadership
Prime Minister Datuk Seri Anwar Ibrahim (centre) with Cambodian Prime Minister Hun Manet (left) and Thailand's Acting Prime Minister Phumtham Wechayachai (right) during a press conference at the Special Joint Meeting held at the Seri Perdana Complex on July 28. – Bernama photo KUALA LUMPUR (Aug 2): 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 per cent 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 per cent 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. – Bernama * Datuk Seri Wong Chun Wai is a National Journalism Laureate and chairman of the Malaysian National News Agency (Bernama). Anwar Ibrahim diplomatic economy wong chun wai
