West Texas Intermediate (WTI) crude oil, the US benchmark, saw a price increase to $71.35 early Tuesday during the Asian trading session, driven by rising concerns over supply disruptions. The price surge follows threats from US President Donald Trump to impose tariffs on Russian oil, intensifying uncertainty in global markets.
On Sunday, Trump expressed frustration with Russian President Vladimir Putin, stating that he would consider imposing secondary tariffs ranging from 25% to 50% on buyers of Russian oil if Moscow continues to obstruct efforts to resolve the ongoing war in Ukraine. The threat was accompanied by another warning to Iran, with Trump indicating potential bombing and tariffs if Tehran fails to reach an agreement with Washington on its nuclear program.
UBS analyst Giovanni Staunovo noted that while Trump’s threat of secondary tariffs has not yet been acted upon, it remains a factor that oil market participants are closely monitoring. “There is a growing risk of supply disruptions in the future,” Staunovo said.
In addition to concerns over oil supply, broader worries about a potential global economic downturn have intensified. These concerns are further exacerbated by Trump’s announcement that his reciprocal tariffs plan, set to be implemented Wednesday, will target all other countries. This added uncertainty ahead of the policy’s rollout has left markets on edge as trade tensions continue to escalate.
