On Tuesday, oil prices settled mixed as markets reacted to heightened U.S.-China trade tensions and President Donald Trump’s reinstatement of his “maximum pressure” campaign on Iran. U.S. West Texas Intermediate (WTI) crude fell $0.46 (0.63%) to $72.70 per barrel, while global benchmark Brent crude edged up $0.24 (0.32%) to $76.20 per barrel. Earlier in the session, oil had dipped more than 3% to its lowest level since late December, driven by China’s retaliatory tariffs on U.S. imports following Washington’s new 10% tariffs on Chinese goods. Market losses were later pared after Trump signed a presidential memorandum directing the U.S. Treasury to impose stricter sanctions on Iran, aiming to cut its oil exports to zero. Iran, which produces 3.3 million barrels per day (3% of global output), had seen exports rise under the Biden administration after previously being reduced under Trump.
Analysts suggest China may further devalue the yuan, potentially putting downward pressure on oil prices. Meanwhile, Trump delayed new tariffs on Mexico and Canada for 30 days in exchange for stronger border security commitments, but signaled no urgency in negotiating with Chinese President Xi Jinping. This uncertainty left markets volatile, with analysts noting that oil prices rebounded on speculation that trade tensions could eventually be eased. Additionally, investors are closely watching U.S. crude inventory data from the American Petroleum Institute (API) for further market direction. Despite the volatility, OPEC+ remains committed to gradually increasing oil production from April, keeping supply-side dynamics stable amid geopolitical risks.