(Bloomberg) — Oil fell in volatile trading as concerns that a trade war between the US and China will hurt global growth countered President Donald Trump’s ramping up of economic pressure on OPEC member Iran.
Most Read from Bloomberg
Brent crude (BZ=F, BZT=F) slid toward $76 a barrel after a rocky start to the week that saw markets whipsawed by the announcements of tariffs, and then delays to duties on Canada and Mexico.
Meanwhile, Trump signed a directive on Tuesday asking Treasury Secretary Scott Bessent to use sanctions and tougher enforcement of existing measures to increase the pressure on Tehran.
Later on Wednesday traders will be looking to inventory figures from the US. The industry-funded American Petroleum Institute reported nationwide commercial crude inventories rose by 5 million barrels last week. That would be the second straight advance from the lowest level since March 2022.
Beijing on Tuesday issued a swift but restrained retaliation to Trump’s levies. A tug of war between the world’s two biggest economies is unlikely to rattle US exports of crude to China, but could impact economic growth and global consumption.
“Trump tariff chaos and trade war is no good for global growth and oil demand growth,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “But supply disruptions, as so often before, can then rapidly and suddenly turn everything around.”
Trump also proposed the US take over the Gaza Strip and assume responsibility for reconstructing the war-torn territory in a press conference with Israeli Prime Minister Benjamin Netanyahu. Trump suggested he would be open to deploying US troops to secure the area.
Crude prices have retreated significantly from a high above $80 a barrel last month. While much of that retreat has been spurred by Trump-led market volatility, there are also signs that pockets of the physical market are softening.
Brent’s nearest timespread — a premium on immediate delivery over futures for the next month that signals market health — closed at its softest level in four weeks on Tuesday.
To get Bloomberg’s Energy Daily newsletter in your inbox, click here.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
