Oil prices surged in the global commodities market following threats by U.S. President Donald Trump to impose additional tariffs on Russian oil buyers and his warning of unprecedented military action against Iran over nuclear deal negotiations.
Brent crude rose by 0.69%, trading at $73.22 per barrel, up from $72.76 in the previous session. The U.S. benchmark, West Texas Intermediate (WTI), increased by 0.66%, settling at $69.80 per barrel from its prior session close of $69.36.
Trump issued a stark warning to Iran, stating that if the country refused to engage in nuclear deal negotiations, it would face severe military consequences. “If they don’t make a deal, there will be bombing—bombing the likes of which they have never seen before,” Trump said in an interview with NBC News.
He also expressed frustration with Russian President Vladimir Putin over comments criticizing Ukrainian President Volodymyr Zelenskyy. Putin recently suggested a transitional administration for Ukraine and threatened to escalate military action, prompting Trump to declare he was “very angry” as he sought to mediate a ceasefire.
Additionally, Trump threatened sanctions on Russia’s oil sector if Moscow failed to contribute to a ceasefire effort. “If Russia and I are unable to make a deal to stop the bloodshed in Ukraine, and if I determine it was Russia’s fault—which it might not be—I will impose secondary tariffs on all oil coming out of Russia,” he stated. “If you buy oil from Russia, you can’t do business in the United States. There will be a 25% tariff on all oil, possibly up to 50%.”
Market Reactions and Supply Concerns
According to Daniel Hynes, a senior commodity strategist at the Australia and New Zealand Banking Group, U.S. sanctions on Iran’s oil sector are already impacting supply chains. “At least 11 U.S.-sanctioned tankers carrying Iranian oil have been idling off the coast of Malaysia, holding close to 17 million barrels for over a month,” Hynes noted.
He further warned that the situation could worsen if the U.S. moves to restrict Russian oil trade. “Trump’s threats of secondary tariffs on Russian oil coincide with Russia’s proposal to place Ukraine under temporary UN-sponsored governance,” he added.
Supply concerns have also been amplified by U.S. inventory data. The Energy Information Administration (EIA) reported a decline of approximately 3.3 million barrels, bringing total U.S. crude inventories to 433.6 million barrels, contrary to market expectations of a 1.5 million-barrel increase.
As geopolitical tensions escalate, oil markets remain volatile, with potential disruptions looming over global supply chains.
