Black Gold Shines as Geopolitical Risk Premium Returns

Brent and WTI surged over 11% in just two trading sessions after President Donald Trump’s administration imposed sweeping new sanctions on Russia’s two largest energy giants, Rosneft and Lukoil.

The move, described by the U.S. Treasury as designed to “degrade Putin’s war chest and accelerate a ceasefire,” sent shockwaves through global energy markets and instantly re-priced Crude. The entire decline following Trump’s October 10th China tariff announcement has now been wiped out – and momentum traders are piling back in with force.

“Every great rally starts with panic, followed by realization,” says Lars Hansen, Head of Research at The Gold & Silver Club. “This is that moment for Oil and those who move fast will capture the biggest windfall of the year.”

Russia’s Oil Trade in Freefall

The sanctions have unleashed a domino effect across the world’s biggest Crude buyers. Within hours, India – which sources more than a third of its Oil imports from Russia – slashed purchases by 1.9 million barrels per day. Days later, China’s state Oil majors suspended Russian cargoes altogether over fears of secondary U.S. sanctions.

That’s a colossal hole – more than three million barrels a day of supply – suddenly without a home. And in the energy market, dislocation means one thing: explosive price revaluation.

“Russia has lost its two lifelines almost overnight,” Hansen notes. “And when the world’s third-largest producer loses access to its biggest customers, there’s no such thing as a mild reaction. Traders are waking up to how big this is.”

The reaction was swift and ruthless. Oil ripped higher through key resistance levels, triggering the largest two-day surge of 2025. Algorithms flipped long, ETFs spiked and open interest ballooned. The smart money didn’t hesitate – it bought the dip with conviction.

Trump Redefines Energy Diplomacy

The sanctions mark a dramatic escalation in Trump’s foreign policy strategy – one that places Crude Oil at the centre of U.S leverage. Treasury Secretary Scott Bessent warned that Washington is “prepared to take further action until Moscow shows a genuine commitment to peace.”

For traders, that message couldn’t be clearer: volatility is back – and Oil is the hottest trade right now. Each new headline now acts as a spark in a market primed with dry powder.

“This is not just another policy move – it’s a seismic shift,” says Hansen. “When the White House takes aim at the world’s top Oil suppliers, traders don’t wait to react – they rush to position. Every barrel suddenly becomes more valuable.”

Turning Sanctions Into Profits

For seasoned traders, this volatility is pure opportunity. The Gold & Silver Club renowned for its precision forecasting across commodities – identified the October 10th sell-off as a textbook buying opportunity.

When WTI crashed to $55 after Trump’s tariff announcement, Hansen’s team issued what they called “the clearest buy signal of the year.”

Now, that call looks prophetic. Prices have exploded higher, and the fundamentals are aligning for further upside. “When panic selling gives way to forced buying,” Hansen explains, “you get vertical moves. That’s exactly what’s happening now.”

The firm’s proprietary models, which have accurately predicted major turning points in both WTI and Brent for over 15 years, now project Crude Oil prices could extend their rally through year-end – a move that could redefine the entire Commodities landscape heading into 2026.

Don’t Watch This Move from the Sidelines

Momentum of this scale doesn’t come often – and when it does, it creates life-changing opportunities.

“Fortunes are made in moments like this,” Hansen says. “Oil is entering a phase where price gaps higher before traders can even react. Blink, and you’ll miss it.”

With geopolitical risk back on the front pages and Energy once again the world’s most powerful asset class, traders who move early are already seeing exponential returns.

The question is no longer if Oil will surge – but it’s how far and how fast?