Oil prices rose due to Russian sanctions fears, drone attacks on Kazakhstan’s pipeline, and global supply disruptions.

Crude oil prices rose on Wednesday amid escalating tensions, driven by fears of U.S. sanctions on Russian oil and ongoing disruptions to global supply. The Caspian Pipeline Consortium (CPC), which handles most of Kazakhstan’s oil exports, faced repeated setbacks from drone attacks and terminal issues, reducing export capacity and tightening markets. A Ukrainian drone strike on Novorossiysk damaged critical infrastructure, injured several people including CPC staff, and temporarily halted operations. Meanwhile, U.S. crude inventories declined, gasoline and distillate stocks fell, and geopolitical risks in Europe and the Middle East heightened concerns over energy security. Investors remain focused on potential Federal Reserve rate cuts and the uncertain future of trade policies.