India’s Oil Pivot Shakes Global Markets as Trump Drops Bombshell
Global oil prices surged after U.S. President Donald Trump claimed that Indian Prime Minister Narendra Modi had agreed to stop buying Russian crude — a move that could tighten global supply and reshape energy markets.
Brent crude, the international benchmark used to price oil from Europe, Africa, and the Middle East, rose above $62 a barrel.
West Texas Intermediate (WTI), the U.S. benchmark, hovered near $59.
If confirmed, the shift could cut a major revenue stream for Moscow and deepen trade tensions worldwide.
Although Trump’s statement triggered market reactions, he did not specify when India would begin reducing its Russian oil purchases.
New Delhi has not officially confirmed the pledge.
India’s Ministry of External Affairs said the country will continue to diversify its energy sources while ensuring “stable prices and secure supplies.”
India and China have been among the biggest buyers of discounted Russian oil under the Group of Seven price cap mechanism, which was designed to keep oil flowing while limiting Russia’s access to war funds.
Bloomberg.com reported that senior U.S. officials have accused Indian companies of profiteering from Russian barrels — a key sticking point in ongoing trade negotiations.
On Wednesday, India’s trade secretary said the country could increase oil imports from the United States by up to $15 billion.
“This is bullish news for sure.
“lndia has been buying about three times as much oil from Russia as from the U.S. in recent months, and would need to source alternatives from Middle Eastern nations to completely halt those purchases,” said Mukesh Sahdev, CEO of Sydney-based analysis firm Xanalysts.
In a related move, the United Kingdom imposed sanctions on Russia’s largest oil producers, two Chinese energy firms, and Indian refiner Nayara Energy Ltd. for their involvement in handling Russian fuel.
Western nations are intensifying efforts to restrict Russia’s energy sector in a bid to choke off petrodollar flows to the Kremlin and limit President Vladimir Putin’s ability to finance the war in Ukraine.
Despite the geopolitical shake-up, crude markets remain under pressure.
Rising trade tensions between the U.S. and China have dampened demand expectations in the world’s two largest oil-consuming nations.
Major trading houses have warned that a long-anticipated oversupply is beginning to emerge.
Trump reiterated that the U.S. is locked in a trade war with China, although Treasury Secretary Scott Bessent has proposed extending tariff pauses to ease disputes over critical minerals.
Official data released Thursday confirmed that U.S. crude inventories rose by 3.5 million barrels last week — a significant build, though smaller than the 7.4 million barrels projected by industry estimates.
The increase adds further pressure to global oil markets already shaken by geopolitical tensions.
