Oil Prices Drop 3% as Trump Implements New Tariffs

Oil prices fell sharply on Thursday following U.S. President Donald Trump's announcement of a 10% baseline tariff on imports from all trading partners, raising fears of a global trade war and its potential impact on economic growth and fuel demand. Brent crude futures dropped by over 2%, while West Texas Intermediate (WTI) fell by a similar margin, reflecting growing concerns about diminishing energy consumption amid escalating trade tensions. The tariffs, which exempt oil and gas imports, have raised alarms among analysts about possible retaliatory measures from affected countries, particularly China and the European Union, which are facing steep additional tariffs. Market experts warned that these developments could lead to a significant slowdown in global economic activity, ultimately affecting oil demand negatively. The situation is compounded by recent U.S. inventory data showing a surprising increase in crude stocks, further pressuring prices. As traders await responses from other nations, the overall sentiment remains bearish, with many analysts predicting a challenging landscape for oil markets in the coming months.