FX.co ★ Oil Eases as Trade War Stokes Demand Concerns

On Tuesday, WTI crude oil futures declined to approximately $71.10 per barrel due to apprehensions that President Donald Trump's expanding trade conflict could dampen energy demand. Trump stated that the reciprocal tariffs he plans to announce on Wednesday would be applied universally, affecting all nations rather than just those with significant trade imbalances with the United States. However, possible supply concerns may mitigate the decline in oil prices following Trump's recent threats towards Russia and Iran. Trump pledged to impose secondary tariffs ranging from 25% to 50% on purchasers of Russian oil if he believes Moscow is obstructing his efforts to conclude the conflict in Ukraine, thereby putting significant importers like India and China under pressure. Additionally, he warned Iran of potential secondary tariffs and military action unless it agrees to a deal to forsake its nuclear weapons ambitions.