Mumbai: International crude oil prices fell on Monday after US President Donald Trump announced a fresh tariff hike. The move increased concerns about global economic growth and fuel demand.
Brent crude futures dropped 45 cents, or about 0.63 percent, to USD 71.31 per barrel. Meanwhile, US crude (WTI) fell 50 cents, or 0.75 percent, to USD 65.98 per barrel during trade.
Trump Announces Higher Tariffs
President Donald Trump said that temporary tariffs on imports from all countries will be raised from 10 percent to 15 percent. This is the maximum level allowed under the law.
The decision comes after the US Supreme Court struck down a large part of his earlier tariff programme. Following that ruling, Trump introduced this new tariff plan.
Why Markets Are Worried?
Experts say higher tariffs can make global trade more expensive. When trade slows down, economic activity in many countries may weaken. If industries slow down, they use less fuel. This reduces demand for crude oil.
Because of this fear, investors became cautious, and oil prices came under pressure.
Last Week’s Price Rally
Just last week, oil prices had risen sharply. The increase was mainly due to concerns about possible military tensions between the US and Iran. Traders feared that any conflict could disrupt oil supply.
Due to these supply concerns, both Brent crude and West Texas Intermediate (WTI) had gained more than 5 percent during the week.
What Happens Next?
Now, the market is closely watching how the tariff hike affects global trade and economic growth. If economic activity slows down further, oil demand may remain weak in the coming months.
Experts believe investors will continue to track global economic signals, geopolitical tensions, and US policy decisions. These factors will decide the next direction of crude oil prices.
