Brent drops 1.3% on October 19 after Russia sanctions waiver
US sanctions relief could boost Russian fuel exports, while attacks on commercial vessels have sharply reduced crude flows from the Gulf.
- Brent crude oil prices fell 1.3% on October 19 following a U.S. decision to waive key sanctions and tariffs against Russia.
- The sanctions waiver raised the prospect of increased Russian fuel exports, which would add to the global energy supply.
- The U.S. action was the result of an agreement with Russia to allow the export of Russian diesel to the United States.
- Following the news, Brent futures dropped by US$1.43 to US$108.43 a barrel in early Asian trading.
Brent crude fell 1.30% in early Asian trading on Monday, October 19, 2026, as US President Donald Trump’s decision to waive key Russia-related sanctions and tariffs raised the prospect of increased Russian fuel exports. Brent futures were down US$1.43 at US$108.43 a barrel by 6.40am Thai time on October 19, equivalent to 11.40pm GMT on October 18. US West Texas Intermediate crude fell 53 US cents, or 0.52%, to US$100.88 a barrel.
The decline followed a rally on Friday, October 16, when Brent briefly reached US$110 a barrel for the first time since May and recorded its highest settlement since May 19. Tensions and security threats in the Middle East had heightened concerns about shipping safety and tighter global energy supplies.
Trump waives key sanctions after Russian diesel deal
Trump signed an executive order on October 16 waiving key sanctions and tariffs under legislation known as the Graham Act. Trump had signed the law in September at the urging of lawmakers seeking to increase pressure on Moscow over its war in Ukraine.
US Secretary of State Marco Rubio said Trump would take up to 60 days to assess the economic impact of the waiver.
The sanctions decision followed an agreement between Trump and Russian President Vladimir Putin for Russia to export diesel to the United States. Ukrainian President Volodymyr Zelenskyy warned that the US actions would harm Ukraine.
Vessel attacks sharply reduce Gulf crude flows
Gulf crude flows dropped to a seven-day average of about 8.5 million barrels per day, compared with more than 20 million barrels per day a week earlier, analytics firm Kpler reported in an October 16 note.
Kpler attributed the sharp reduction to intensified attacks on commercial vessels and reported at least 10 confirmed incidents involving commercial ships during the week.
Egypt, meanwhile, said it was ready to provide Saudi Arabia with the support needed to defend its security and stability against Yemen’s Iran-allied Houthis. The pledge raised the prospect of further escalation in the Middle East war.
