Oil prices slipped on Thursday as escalating trade tensions triggered by fresh U.S. tariff threats dampened market sentiment. Brent crude futures dipped by 3 cents to $70.16 a barrel at 0401 GMT, while U.S. West Texas Intermediate (WTI) crude declined 6 cents to settle at $68.32 a barrel.
The decline comes in the wake of U.S. President Donald Trump’s aggressive trade moves, which analysts fear could hinder global economic growth. Trump recently threatened Brazil with a punitive 50% tariff on exports to the U.S., deepening a diplomatic row with Brazilian President Luiz Inacio Lula da Silva.
In addition, the White House announced upcoming tariffs on key sectors including copper, semiconductors, and pharmaceuticals, and dispatched new tariff notices to the Philippines, Iraq, South Korea, Japan, and other trade partners.
“Macro uncertainty has led to a more cautious buying environment, particularly in Asia,” said energy intelligence firm Kpler, adding that the easing of geopolitical tensions—thanks to the sustained Israel-Iran truce—has led to fading risk premiums.
Despite the negative outlook, robust U.S. gasoline demand offered some cushion to global oil benchmarks, preventing steeper losses.
