Oil dipped as US-China trade war fears outweighed Iran sanctions.West Texas Intermediate dropped 0.6%, closing below $73 a barrel after rebounding from an earlier 3.4% decline sparked by concerns that US-China trade tensions could weaken energy demand. Oil pared losses after Trump signed a directive to increase economic pressure on Iran.
Over the past four years, weaker enforcement and sanctions evasion have helped Iran raise oil exports by about 1 million barrels per day. Stricter enforcement could cut exports by roughly two-thirds, costing Iran around $30 billion annually.
Oil Prices Fall on US-China Trade War ConcernsOil prices dipped as fears of a US-China trade war impacting global growth outweighed stricter US sanctions on Iranian crude.WTI fell 0.6%, settling below $73 after recovering from a 3.4% drop driven by tariff tensions. Prices pared losses after Trump signed a directive increasing pressure on Iran.Over four years, weaker US enforcement let Iran boost exports by 1 million barrels a day.
Stricter sanctions could cut two-thirds of exports, costing Iran $30 billion annually.China retaliated against US tariffs, briefly pushing oil futures below 2024 levels. China’s new levies on US oil and LNG add to demand concerns, as the US shipped 250,000 barrels/day to China last year.Meanwhile, Trump delayed tariffs on Canada and Mexico after agreements on migration and drug control.
Oil markets remain volatile amid US sanctions on Russia and China’s declining manufacturing activity.
