Crude oil prices settled 1% at a two-week high. How might it affect you? .

Oil Prices Surge Amid Geopolitical Tensions

Brent futures climbed by 94 cents, or 1.3%, closing at $75.17 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $1.14, or 1.6%, settling at $71.24. Both benchmarks experienced nearly a 6% rise this week, marking their highest settlements since early November. This surge follows intensified military actions in Ukraine, particularly after Western support allowed Ukraine to target deeper into Russian territory.

Escalating Conflict and Market Reactions

Analysts highlight that the Russia-Ukraine conflict has escalated geopolitical tensions significantly. President Putin has announced ongoing tests of Russia’s new hypersonic missiles, further raising concerns in the oil market. Analysts warn that any accidental damage to oil infrastructure could exacerbate the conflict and disrupt global oil supplies.

Impact of Sanctions and Economic Data

In response to Moscow’s actions, the U.S. has imposed new sanctions on Gazprombank. Meanwhile, China’s crude oil imports are expected to rebound, driven by supportive trade policies amid concerns over potential tariffs from the U.S. Conversely, eurozone business activity has contracted, contrasting with a rise in U.S. manufacturing and services, leading to a stronger dollar that could dampen oil demand globally.