(MENAFN- Yolo Wire) Tariffs imposed by U.S. President Donald Trump are likely to raise costs and lead to project delays in the oil and natural gas sectors in 2026, according to a new a report from Deloitte.

The professional services and accounting firm says that tariffs are disrupting the global supply chains relied on by energy companies.

Specifically, tariffs are making it harder to source materials such as drilling rigs, valves, compressors, and specialized steel that are needed for current operations and future projects.

U.S. tariffs on key input materials such as steel and aluminum could increase costs by as much as 40%, potentially leading to delayed capital expenditures and projects.

Deloitte concludes that U.S. tariffs of as much as 50% on steel and aluminum imports are reshaping the oil and gas industry's cost structure and leading to growing uncertainty.

Final investment decisions and offshore greenfield projects by leading oil majors such as Chevron (NYSE: $CVX) and Shell (NYSE: $SHEL), worth more than $50 billion U.S., could be pushed beyond next year.

Long-term, investment activity in the oil and natural gas sector will erode, writes Deloitte in its outlook for the energy market.

The firm adds that it expects oil and gas companies to renegotiate contracts with escalation and force majeure clauses to share risks and limit exposure to macroeconomic volatility.

London, England-based Deloitte is privately held and its stock does not trade on a public exchange.

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