Crude oil prices climbed as hawkish remarks from the EU's top diplomat fueled expectations of tighter sanctions against Russia. WTI rose 1.4% on Tuesday, settling just below $61 per barrel, after EU High Representative for Foreign Affairs Kaja Kallas stated that Moscow's aggression toward the bloc should be classified as terrorism. The comments came amid tightening diesel supplies, where Russia plays a key role, with the spread between ICE’s two nearest diesel contracts surging. European benchmark futures gained 4.5%.

With just days remaining before U.S. sanctions on Russian oil giants Rosneft PJSC and Lukoil PJSC take effect, prices for Russia’s flagship crude hit a more than two-year low, further boosting bullish sentiment.

Other ripple effects are emerging. Major Asian buyers have paused at least some purchases. ICE announced that traders delivering physical ICE diesel contracts will soon be barred from supplying diesel refined from Russian crude in third countries.

Despite this, U.S. benchmark crude futures remain down year-to-date due to persistent oversupply concerns.

However, Frank Monkam, macro trading head at Buffalo Bayou Commodities, noted that WTI has held firm above the $60 threshold. “Unless we see a broad collapse in risk assets—especially equities—the same bearish factors alone may not push prices below $60,” he said. “Absent that scenario, the market remains vulnerable to short-squeeze-driven upside, particularly on news like today’s EU pressure for tougher sanctions.”

WTI December futures rose 1.4% to settle at $60.74 per barrel. Brent January futures gained 1.1%, closing at $64.89 per barrel.