Oil prices rise sharply after Trump’s tariffs announcement
(MENAFN) Oil prices saw a sharp increase in early trading on Monday following the announcement by U.S. President Donald Trump of new tariffs on imports from Canada, Mexico, and China. The move has heightened fears of a potential trade war, raising concerns about disruptions to crude supplies from major U.S. trading partners. The previous week had already been difficult for the oil market, with brent crude recording a 2.1 percent decline over the week and U.S. crude dropping 2.9 percent. This marked the second consecutive weekly loss for both benchmarks, with prices closing near their lowest levels of the year 2025.
In response to the latest developments, U.S. West Texas Intermediate (WTI) crude futures for March delivery surged by 2.1 percent, or approximately USD1.5, reaching nearly USD74 per barrel. Earlier in the session, prices had climbed to a one-week high of USD75.18 before retreating slightly. Brent crude futures for April delivery also experienced a notable increase, rising by 1.5 percent, or around USD1.5 per barrel, to trade at USD77.34 per barrel. However, some of these gains were trimmed later, with prices fluctuating around these levels by 04:30 GMT.
On Friday, oil prices had suffered losses, contributing to another weekly decline as investors prepared for the anticipated 25 percent tariffs imposed by the United States on imports from Mexico and Canada. Brent crude futures for March delivery declined by USD0.1, settling at USD76.76 per barrel, while U.S. WTI crude futures dropped by USD0.2, or 0.3 percent, to reach USD72.53 per barrel. The uncertainty surrounding trade relations and economic growth has played a key role in driving market volatility, with traders closely monitoring geopolitical and economic developments.
On Saturday, Trump followed through on his repeated threats, officially imposing significant tariffs on goods from Mexico, Canada, and China. This move has escalated trade tensions between the world’s largest economies, sparking concerns among global banks and policymakers about its potential impact on global growth and inflation. Many experts fear that the ongoing trade disputes could weaken economic expansion, disrupt supply chains, and lead to higher prices for consumers. With these risks looming, the oil market remains on edge, reacting to each new development in international trade policies.
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