Oil gains amid escalating US tariff concerns

Brent crude’s price has moved higher as investors turn their attention back to mounting US tariff concerns.

IMAGE: Oil storage tanks. Getty Images

The Donald Trump-led US administration has announced the imposition of a 10% temporary ‘worldwide tariff’ on countries trading with the US, according to a statement released by the White House.”

The executive order came hours after the US Supreme Court ruled Trump’s import levies as illegal on Friday, following which the US Customs and Border Protection agency halted collections of duties imposed under the International Emergency Economic Powers Act (IEEPA), Reuters reported.

The development has rattled the oil market, analysts said, as focus shifted back on trade uncertainty. “[US] tariff uncertainty has re-emerged,” two analysts from ING Bank wrote.

The new levy – due to come into effect today – will fall under a different legal authority, according to Reuters.

“These tariffs can remain in place for a maximum of 150 days, and this will likely be a period that the administration uses to find alternatives to keep tariffs in place,” ING Bank analysts said.

By Aparupa Mazumder

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