Oil prices climb as Ukraine strikes disrupt Russian energy facilities
- Posted on August 25, 2025
- International Conflict and Politics
- By Arijit Dutta
- 112 Views
Oil prices edged higher after Ukrainian drone strikes on Russian energy infrastructure, including a nuclear plant and refineries, sparked fears of supply disruption. Brent crude rose to $67.79 a barrel, while WTI reached $63.75. Hopes of a US rate cut and tentative Russia-Ukraine concessions also boosted investor sentiment in commodities.

Global oil prices ticked upward on Monday after Ukrainian drone strikes targeted Russian energy sites, fueling concerns of supply disruptions. Brent crude futures rose 6 cents to $67.79 a barrel, while West Texas Intermediate gained 9 cents to $63.75 in early trading.
The attacks included a strike on one of Russia’s largest nuclear power plants, which forced a sharp reduction in reactor output, as well as a massive blaze at the Ust-Luga fuel export terminal. Separately, fires continued to rage for a fourth day at the Novoshakhtinsk refinery, which has an annual capacity of about 5 million metric tons of oil, largely for export.
Markets reacted quickly to the escalating conflict, with analysts warning that Ukraine’s effective targeting of Russian energy infrastructure increases risks of tighter crude supply. “The risks for crude oil are shifting to the topside,” said Tony Sycamore, a market analyst at IG.
Geopolitical developments also added momentum. US Vice President JD Vance noted that Russia had made “significant concessions” in peace talks, including dropping demands for a pro-Moscow government in Kyiv and recognizing Ukraine’s right to security guarantees. However, President Donald Trump reiterated that Moscow could face new sanctions within two weeks if no progress toward peace is achieved.
At the same time, investor sentiment was buoyed by signals from the US Federal Reserve. Chair Jerome Powell hinted at a potential interest rate cut next month, raising hopes for stronger global growth and energy demand. Analysts said this “risk-on tone” in financial markets, combined with supply-side disruptions, has given further support to commodity prices.
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With war pressures intensifying and economic policy shifts looming, crude markets remain on edge, balancing fragile hopes of peace against the hard reality of energy insecurity.