Brent crude oil futures dropped to approximately $74.5 per barrel on Tuesday amid concerns that the escalating trade war initiated by President Donald Trump could dampen energy demand.
Oil eases as trade war stokes demand concerns
Trump stated that the reciprocal tariffs he plans to announce on Wednesday would affect all countries, not just those with the largest trade imbalances with the U.S. However, potential supply disruptions could help offset the decline in oil prices, following Trump’s recent threats against Russia and Iran.
Tariffs to be launched on April 2
He warned of imposing secondary tariffs of 25%-50% on countries buying Russian oil if he believes Moscow is obstructing efforts to end the war in Ukraine, putting pressure on major buyers like India and China. Additionally, Trump threatened Iran with both secondary tariffs and military action unless it agrees to a deal that abandons its nuclear weapons program.
