Oil Futures Climb as Trade Tensions Escalate

Oil futures witnessed a significant uptick this Friday, driven by growing concerns over potential reductions in global crude supplies. This comes in the wake of the latest tariffs imposed by US President Donald Trump on key trading partners, including Canada, Mexico, and China.

New Tariffs Spark Global Trade Tensions

The United States has announced a series of tariffs, including a 25% levy on imports from Canada and Mexico, and a 10% tariff on Chinese goods. Notably, Canadian oil exports will face a 10% tariff, while Mexican energy imports will be hit with the full 25% tariff. These measures are expected to increase costs for consumers and have prompted immediate responses from the affected countries.

Retaliatory Measures and Market Reactions

In response to the US tariffs, Canada and Mexico have vowed to impose similar duties on American products. Meanwhile, China has signaled its intention to challenge the tariffs at the World Trade Organization. Amid these developments, WTI for March delivery surged by 2.54% to $74.38 per barrel, and Brent for April settlements increased by 1.45% to $76.85 per barrel.