Trump's Tariff Threat Sends Oil Prices Soaring, Markets on Alert for New Trade War
World oil prices surged to their highest level since early December after US President Donald Trump announced plans for new tariffs on Iran. This statement immediately sparked market concerns about disruptions to global oil supplies and escalating geopolitical tensions.
West Texas Intermediate (WTI) crude oil rose to near US$60 per barrel, after surging more than 6% in the last three trading sessions. Meanwhile, Brent prices closed below US$64 per barrel on Monday, but remained at high levels.
Trump announced via social media that he would impose a 25% tariff on goods from countries deemed to be doing business with Iran. The tariffs are said to be effective immediately, although he did not specify which countries would be affected or how they would be implemented.
This policy has the potential to reignite the trade war, particularly with China, the world's largest crude oil importer and a major buyer of Iranian oil. If trade relations deteriorate, global trade flows and energy supplies could be disrupted, driving oil prices even higher.
Meanwhile, the wave of protests in Iran—OPEC's fourth-largest oil producer—has also added to market concerns. The risk of production disruptions has prompted oil traders to increasingly aggressively hedge against price spikes, signaling the market is bracing for greater uncertainty ahead. (az)
Source: Newsmaker.id
