West Texas Intermediate (WTI), the U.S. crude oil benchmark, trades around $72.15 in the early Asian session on Tuesday, edging higher despite lingering concerns over escalating tariffs. While oil markets remain cautious, geopolitical tensions continue to provide support to crude prices.
Tariff Uncertainty Weighs on Market Sentiment
Oil traders remain on edge as former U.S. President Donald Trump expanded steel and aluminum tariffs on Monday, extending them to all imports and effectively nullifying trade agreements with the European Union, the United Kingdom, Japan, and other key partners.
“Tariff uncertainty is the key theme, impacting risk appetite and spilling over into oil markets,” said Harry Tchilinguiran of Onyx Capital. Investors are assessing the broader implications of trade restrictions, with fears that escalating tensions could slow global economic growth and weaken energy demand.
Geopolitical Risks Provide Support
Despite trade concerns, geopolitical instability continues to underpin crude prices. Escalating tensions in the Middle East and the ongoing Russia-Ukraine conflict add to supply risks. Iranian President Masoud Pezeshkian has urged OPEC members to stand against potential U.S. sanctions, following Trump’s renewed efforts to push Iran’s oil exports to zero.
As markets digest the impact of trade policies and geopolitical developments, WTI remains caught between opposing forces—pressured by economic uncertainty yet supported by supply risks. Traders will closely monitor further policy actions and geopolitical shifts for directional cues.
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