WTI crude oil futures fell to $64.40 per barrel on Tuesday, retracing part of Monday’s nearly 2% rally that pushed prices to a three-week high, as traders tracked geopolitical and policy developments.

Monday’s surge was driven by supply concerns after Ukraine launched drone strikes on Russian energy infrastructure, while President Donald Trump warned of new tariffs on Russia’s trading partners or further sanctions if peace talks stall in the coming weeks.

On the demand side, expectations of easier US monetary policy provided a floor, after Fed Chair Jerome Powell signaled a possible September rate cut, which could bolster growth and energy consumption.