Washington – Oil prices experienced a decline on Tuesday following the announcement by U.S. President Donald Trump to suspend military aid to Ukraine. This decision comes as markets brace for the implementation of U.S. tariffs on imports from Canada, Mexico, and China.
Brent crude futures dropped by 54 cents, or 0.75%, settling at $71.08 per barrel. In parallel, West Texas Intermediate (WTI) crude, the benchmark for U.S. oil prices, decreased by 36 cents, or 0.53%, to reach $68.01 per barrel.
A White House official confirmed on Monday that all military assistance to Ukraine has been halted, a move that follows a contentious meeting in the Oval Office between President Trump and Ukrainian President Volodymyr Zelensky last week.
The tariffs, which apply to imports from Canada and Mexico, are set to take effect today, with a 10% duty on Canadian energy products. Additionally, the tariff on goods imported from China will rise from 10% to 20%. Analysts anticipate that these tariffs could dampen economic activity and subsequently diminish demand, exerting downward pressure on oil prices.
| Type | Change | Price (USD) |
|---|---|---|
| Brent Crude | -54 cents (0.75%) | $71.08 |
| WTI Crude | -36 cents (0.53%) | $68.01 |
