Oil Prices Retreat From Five-Month Highs as Trump Pauses New Russia Sanctions

Oil prices eased slightly after climbing to near five-month highs, as markets weighed US President Donald Trump’s decision to delay new sanctions on Russia against continued risks to global energy supplies from attacks on shipping and tensions in the Middle East.

Oil prices pulled back from recent highs as markets weighed U.S. policy on Russian energy exports against ongoing shipping security risks in the Middle East.

Brent crude, the international benchmark, fell 2.5% to $107.16 per barrel, while US benchmark crude declined 2.2% to $96.84 per barrel, according to a CBS News report.

Prices fell after Trump signed an executive order late Friday placing new US sanctions against Russia on hold, just days before they were due to take effect.

The move disappointed Ukraine and could allow Russian energy exports to increase.

Trump’s decision followed his earlier statement this month that he had reached a diesel deal with Russia in an effort to lower elevated US fuel prices ahead of the Nov. 3 midterm elections.

Despite Trump’s efforts to ease energy costs for Americans, oil prices have remained significantly higher than before the war involving Iran, largely because of continued risks to energy supply chains stemming from the crisis in the Middle East.

On Friday, Brent crude climbed to nearly $110 per barrel, its highest level since mid-May.