Economy Insights – Baghdad
Oil prices experienced an uptick today, as investors assessed the implications of a recent announcement by US President Donald Trump regarding potential tariffs on all imports of steel and aluminum. These moves have raised concerns over the potential impact on global economic growth and energy demand.
As of 01:33 GMT, Brent crude futures advanced by 40 cents, or 0.5%, to reach $75.06 per barrel. In parallel, US West Texas Intermediate crude valued at $71.38 per barrel, reflecting a similar increase of 38 cents or 0.5%.
Market data indicates this marks the third consecutive week of price declines, prompted by fears of escalating global trade tensions.
In a further escalation of his trade policy, Trump announced a proposed 25% tariff on steel and aluminum imports to the United States.
This latest measure follows a previous announcement just one week prior, wherein the President introduced tariffs on imports from Canada, Mexico, and China, albeit suspending duties on certain neighboring countries almost immediately thereafter.
Despite these threats, investor sentiment appears somewhat reassured, perhaps reflecting a consensus that reacting negatively to every significant announcement may not yield the best outcomes.
Meanwhile, China is set to implement retaliatory tariffs starting today, with no signs of progress in trade negotiations between Beijing and Washington reported.
Additionally, the US intensified its efforts against Iran last week, with the Treasury Department enforcing new sanctions on select individuals and vessels involved in the shipment of millions of barrels of Iranian crude oil to China annually.
For ongoing updates, consider subscribing to our channel on Tilekram
