Oil prices held steady on Friday after a more than 1% drop in the previous session, as traders weighed the impact of newly announced U.S. tariffs and potential disruptions to Russian crude exports.
Brent crude futures inched up 0.06% to $71.74 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.01% to $69.27 by 1201 GMT. Despite the flat movement, Brent is on track to gain 4.9% for the week, with WTI set for a 6.4% weekly rise.
The rally earlier in the week followed U.S. President Donald Trump’s threat to impose 100% secondary tariffs on nations purchasing Russian oil, specifically targeting China and India. Analysts warn such measures could disrupt up to 2.75 million barrels per day of Russian seaborne exports, potentially tightening global supply.
Attention shifted Friday to Trump’s broader tariff move. The president signed an executive order raising import duties to between 10% and 41% on dozens of trading partners, including Canada, India, and Taiwan, effective August 1. These higher tariffs could weigh on global economic growth and dampen fuel demand by driving up consumer prices.
Recent U.S. inflation data already shows price pressures from earlier tariffs, particularly in imported goods like furniture and recreation products. Rising inflation is expected to delay any Federal Reserve interest rate cuts until at least October, maintaining higher borrowing costs and limiting growth — factors that could restrain oil consumption.
While tariffs raise concerns over demand, fears of supply disruption from potential sanctions on Russian crude continue to provide upward support for oil markets, keeping prices volatile amid escalating geopolitical and trade tensions.