Crude oil markets retreat as economic concerns outweigh Trump’s tariff threats

Crude oil futures prices opened higher during Monday’s Asian session following Trump’s threats to impose tariffs on Russia’s oil exports. The US president also said there would be “bombing” and “secondary tariff” on Iran if the country failed to make a nuclear deal.

The West Texas Intermediate (WTI) and Brent futures both jumped 0.6% at the market open but later retreated as risk-off sentiment prevailed. Concerns over a global economic downturn intensified ahead of Trump’s auto and reciprocal tariffs, which are set to take effect on Wednesday.

Oil prices have climbed approximately 5% since mid-March after the US struck Houthis militants, an Iran-backed military group in Yemen. Houthis group had launched attacks on commercial shipping vessels in the Red Sea following Israel’s retaliation against Hamas in Gaza.

Last week, Trump also threatened to impose 25% tariffs on countries purchasing Venezuela’s oil, expected to take effect on 2 April. His latest comments over the weekend have added further upside pressure on crude prices.

“If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia’s fault — which it might not be — but if I think it was Russia’s fault, I am going to put secondary tariffs on oil, on all oil coming out of Russia,” said Trump during a phone interview with NBC News on Sunday, “That would be that if you buy oil from Russia, you can’t do business in the United States…There will be a 25% tariff on all oil, a 25 to 50 point tariff on all oil.”

In a separate interview on Saturday, Trump threatened “secondary tariffs” and “bombing” on Iran if the country refuses to stop nuclear weapons development. “There will be bombing. It will be bombing the likes of which they