Indian state-owned oil refiners have paused purchases of Russian oil over the past week. This comes as discounts on Russian crude have shrunk to their lowest since 2022, and more significantly, following warnings from US President Donald Trump about imposing tariffs on countries buying Russian oil. India, the world's third-largest oil importer and the biggest buyer of seaborne Russian crude, is a crucial revenue source for Russia amidst the ongoing war in Ukraine. The state refiners, including Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd, are now seeking alternative supplies primarily from the Middle East and West Africa. While state refiners have halted purchases, private refiners like Reliance Industries and Nayara Energy, which have existing annual deals, continue to buy Russian oil. Trump's recent threats include potential 100% tariffs on countries buying Russian oil unless a peace deal is reached with Ukraine.

Gold prices are firming near $3,300, rebounding from a one-month low, as renewed trade tensions ahead of the August 1 tariff deadline, coupled with a slight weakening of the US Dollar, fuel safe-haven demand. Despite the Federal Reserve keeping interest rates unchanged and expressing caution about rate cuts, the market is reacting to President Trump's announcement of new tariffs on India and increased tariffs on Brazil, even as trade deals were finalized with South Korea, the EU, and Japan. This fragile market sentiment, combined with strong gold demand from ETFs and central banks reported by the World Gold Council, is supporting gold's recovery.