India is looking to reduce its Russian oil imports with refiners planning a gradual reduction, according to a Reuters report quoting sources. Russia continues to be India’s largest crude oil supplier. The Donald Trump administration has imposed 50% tariffs on India, 25% of which are for the latter’s crude oil procurement from Russia.On Wednesday, US President Donald Trump claimed that Prime Minister Narendra Modi had given assurance that India would discontinue purchasing oil from Russia.“So I was not happy that India was buying oil, and he (Modi) assured me today that they will not be buying oil from Russia,” Trump informed reporters at a White House gathering on Wednesday.Sources told Reuters that Indian refiners have not received any official directive from the government regarding stopping Russian oil imports.The sources quoted in the report indicated that an immediate halt to Russian oil purchases would be problematic, as transitioning to alternative crude sources would result in increased global oil prices and potentially trigger inflation concerns.During April to September, India’s Russian crude imports averaged 1.75 million barrels per day, representing approximately 36% of total oil imports, down from 40% in the corresponding period last year, according to government statistics.Imports of US crude increased by 6.8% year-on-year to roughly 213,000 bpd, constituting 4.3% of total imports.For the six-month period ending September 2025, Middle Eastern oil’s proportion increased to 45% from 42%, as revealed by the data.Following Trump’s claim, India issued a statement on Thursday emphasising its two primary objectives: maintaining stable energy prices and ensuring supply security.“It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective,” the foreign ministry said in a statement.Indian officials are currently conducting trade negotiations in Washington, whilst the US has increased tariffs on Indian goods by twofold to encourage New Delhi to decrease Russian oil imports. US negotiators have indicated that reducing these purchases would be essential for lowering India’s tariff rate and concluding a trade agreement, the Reuters report said.India and China have emerged as the leading purchasers of Russian seaborne crude exports, benefiting from reduced prices that Russia has had to offer following European buyers’ withdrawal and sanctions imposed by the US and EU after the Russia-Ukraine war that started in February 2022.Meanwhile India has indicated that it is exploring enhanced energy collaboration with the United States.“The current Administration has shown interest in deepening energy cooperation with India. Discussions are ongoing,” said foreign ministry spokesperson Randhir Jaiswal in the statement.

The UK economy grew slightly in August helped by an increase in manufacturing output, according to the latest official figures.

The economy expanded by 0.1%, the Office for National Statistics said, after contracting by 0.1% in July.

The government has made boosting the economy a key priority and pressure is mounting ahead of the Budget next month, but economists expect growth to remain sluggish over the next few months.

Many analysts expect that tax rises or spending cuts will be needed to meet the chancellor’s self-imposed borrowing rules.

The Institute for Fiscal Studies is projecting Rachel Reeves will need to find £22bn to make up a shortfall in the government’s finances, and will “almost certainly” have to raise taxes.

On Wednesday, Reeves said she was “looking at further measures on tax and spending, to make sure that the public finances always add up”.

The main driver of growth in August was the manufacturing sector, which grew by 0.7%.

However, the key services sector – which covers businesses in sectors such as retail, hospitality and finance – saw no growth during August.

Monthly growth figures can be volatile, and the ONS has downgraded July’s figure from its initial estimate of zero growth to a 0.1% contraction.

The ONS is focusing on growth over a rolling three-month period, and in the three months to August the economy expanded by 0.3%, which was a slight improvement on the previous figure.

“Economic growth increased slightly in the latest three months. Services growth held steady, while there was a smaller drag from production than previously,” said Liz McKeown, ONS director of statistics.

Yael Selfin, chief economist at KPMG UK, said that while the economy had returned to growth in August, the “outlook remains weak”.

She said households were facing higher costs for essentials such as food, while uncertainty about potential tax rises in the Budget was “expected to weigh on activity for both households and businesses”.

“As a result, we anticipate growth to remain sluggish over the coming months.”

Ruth Gregory, deputy chief UK economist at Capital Economics, called August’s growth “meagre”.

She said the increases in taxes for businesses that took effect in April this year – such as the rise in employers’ National Insurance contributions – were “undoubtedly playing a part in restraining growth”.

“There is little reason to think GDP growth will accelerate much from here,” Ms Gregory said.

“The disruption to the auto sector caused by the Jaguar Land Rover cyber-attack probably meant the economy went backwards in September.”

Earlier this week, the International Monetary Fund (IMF) predicted that the UK would be the second-fastest-growing of the world’s most advanced economies this year.

However, it also said the UK would face the highest rate of inflation among G7 nations both this year and next, as result of rising energy and utility bills.

A Treasury spokesperson said: “We have seen the fastest growth in the G7 since the start of the year, but for too many people our economy feels stuck.

“The chancellor is determined to turn this around by helping businesses in every town and high street grow, investing in infrastructure and cutting red tape to get Britain building.”

Shadow chancellor Mel Stride said the latest figures “show that growth continues to be weak and Rachel Reeves is now admitting she is going to hike taxes yet again, despite all her promises”.

“If Labour had a plan – or a backbone – they would get spending under control, cut the deficit and get taxes down.”

Daisy Cooper, Liberal Democrat Treasury spokesperson, said the government was “simply not doing enough to kickstart growth”.

“The chancellor must quit her slowcoach approach to the economy and finally drop her damaging national insurance hike, which has stifled business and hit high streets up and down the country.”

Asian markets edged higher on Thursday as investors weighed escalating tensions in the US-China trade war alongside expectations that the Federal Reserve will continue cutting interest rates this year.The region’s gains follow a broadly positive session on Wall Street and mark a second consecutive day of recovery, as traders focused on softer US economic data and central bank signals that may favour further monetary easing.

Trump reignites trade war fears

Markets have been volatile this week after US President Donald Trump threatened 100% tariffs on Chinese goods in retaliation for Beijing’s new rare-earth export controls.When asked about the possibility of a prolonged trade conflict, Trump bluntly told reporters, “Well, you’re in one now… We have a 100 percent tariff. If we didn’t have tariffs, we would be exposed as being a nothing.”Despite the hawkish tone, treasury secretary Scott Bessent suggested a more conciliatory approach, proposing a potential extension of the tariff truce if Beijing delays its rare-earth restrictions.Trump still plans to meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month.

Fed rate cut expectations support markets

Investors were also encouraged by data from the Fed’s “Beige Book” survey, which pointed to a softer US job market, echoing other recent weak economic indicators. Fed chair Jerome Powell had warned earlier this week that “the downside risks to employment appear to have risen,” reinforcing market bets on additional rate cuts.Economists, however, remain cautious. Bank of America noted that uncertainties persist over trade, inflation, growth, and US policy, including healthcare and drug pricing.

Safe-haven assets climb

The combination of trade war jitters, rate cut expectations, and a weaker dollar pushed gold to new daily records, reaching $4,234.70 on Thursday.

Key market figures

Markets in Sydney, Seoul, Wellington, Taipei, and Manila also posted gains as traders balanced geopolitical risks with hopes for accommodative US monetary policy.