Trade Disputes Spark Oil Price Increase

As trade tensions between the United States and the European Union intensify, crude oil prices have experienced a significant surge, climbing over 1% this Wednesday.

The immediate catalyst for this price jump was the enforcement of Washington's 25% tariffs on steel and aluminum imports, a move that has drawn sharp criticism and retaliatory measures from the EU, amounting to €26 billion. This development has not only strained US-EU relations but also raised concerns over the potential impact on global trade and energy markets.

Global Reactions and Market Responses

Adding to the discourse, UK Prime Minister Keir Starmer voiced his disappointment with the US tariffs, emphasizing a need for a pragmatic approach in navigating trade relations with Washington. Meanwhile, the oil market reacted swiftly, with West Texas Intermediate for April settlements rising by 1.30% to $67.17 per barrel, and Brent for May deliveries increasing by 1.19% to $70.46 per barrel at 8:30 am ET.