The price of oil on international exchanges fell after the American administration announced a 15% increase in import tariffs. Such protectionist measures intensified investors' concerns about a slowdown in global economic growth and a corresponding reduction in fuel consumption worldwide. This was reported by Reuters, writes UNN.
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The tariff decision offset the growing risk of military conflict between the US and Iran, which last week led to a more than 5% increase in Brent and West Texas Intermediate oil prices.
Brent crude futures fell 45 cents, settling at $71.31 a barrel, while US crude fell 50 cents to $65.98.
Markets reacted to the US President's Saturday statement about raising the temporary tariff from 10% to the legally allowed maximum of 15%. This step was the White House's response to the US Supreme Court's decision, which had earlier canceled the previous tariff program, forcing the administration to seek new ways to restrict imports.
The new US tariff policy has become a more significant factor for pricing than geopolitical tensions in the Middle East. Despite the threat of a large-scale conflict with Iran, which traditionally stimulates an increase in raw material prices, investors are currently more focused on the risks of a global recession.
Economists predict that higher duties could lead to a decrease in international trade volumes, which will inevitably hit oil demand from large industrial centers and transport companies.