Brent crude oil climbed above $73 per barrel on Monday as geopolitical risks intensified. President Trump stated that he may impose secondary tariffs of 25% to 50% on buyers of Russian oil if he believes Moscow is obstructing his efforts to end the Ukraine war.
Oil surges amid geopolitical tensions
Additionally, he issued a warning of further tariffs and potential military action against Iran should Tehran fail to reach an agreement with the U.S. on its nuclear program.
Meanwhile, a U.S.-brokered ceasefire in the Black Sea between Ukraine and Russia remains fragile, with Moscow insisting on sanctions relief as a condition for compliance. In energy markets, the OPEC+ alliance, led by Saudi Arabia and Russia, is preparing to implement a gradual production increase starting in April, with reports suggesting further output hikes in May.
Adding to market concerns, President Trump’s forthcoming reciprocal tariffs, set to take effect on April 2, have stoked fears of a global trade war that could weigh on economic growth and dampen energy demand.
WTI crude rises by over 1% on Monday
WTI crude oil gained more than 1% to reach $69.9 per barrel on Monday, driven by escalating geopolitical tensions and supply concerns. President Trump signaled the possibility of imposing steep secondary tariffs on buyers of Russian oil and reiterated the potential for further punitive measures against Iran.
The U.S.-brokered Black Sea ceasefire between Ukraine and Russia remains precarious, with Moscow demanding sanctions relief in exchange for cooperation. Meanwhile, OPEC+ is set to begin a gradual production increase in April, with indications that additional hikes may follow in May.
Concerns over a potential global trade war have also unsettled markets, as Trump's new reciprocal tariffs, scheduled to take effect on April 2, raise fears of a broader economic slowdown that could impact global oil demand.
