Mumbai: US President Donald Trump triggered fresh volatility in global markets after announcing a tough trade move against Iran. He said any country doing business with Iran would face a 25 percent tariff on all trade with the United States. The decision came without detailed guidelines but had an immediate impact on oil prices worldwide.
Oil Prices Hit One-Month High
Following the announcement, crude oil prices moved sharply higher. West Texas Intermediate, or WTI crude, rose close to 60 dollars per barrel. This level marked the highest price seen in about a month. Over the previous three trading sessions, WTI had already gained more than six percent, showing strong bullish momentum.
China Trade War Fears Return
Trump shared the tariff warning on social media, saying it would take effect immediately. The lack of clarity around enforcement added to uncertainty. The move also raised concerns about a renewed US-China trade war. China is the world’s largest crude oil importer and buys nearly 90 percent of Iran’s total oil exports.
Supply Worries Support Prices
Traders are now taking steps to protect themselves from sharp price swings. As a result, trading volumes in Brent crude call options touched record levels on Monday. Fears that Iran’s daily oil exports could be disrupted have eased some concerns about oversupply in the global market.
Iran Export Signals Tightness
Iran’s oil exports make up just under two percent of global oil demand. Reports suggest that oil stored at a key Iranian export terminal is nearly one-fifth lower than at the start of the year. This is seen as a sign that Iran is moving oil to safer locations amid rising tensions.
Goldman Sachs Sees Volatility
Investment bank Goldman Sachs said oil prices could still face downward pressure this year due to excess supply. However, geopolitical risks linked to Russia, Venezuela, and Iran may keep markets volatile. The bank maintained its 2026 average price forecast of 56 dollars for Brent and 52 dollars for WTI, while warning prices could dip later in the year.
