Oil prices increased on Tuesday in the global commodities market, fueled by the impending implementation of U.S. reciprocal tariffs in April, supply concerns due to sanctions on Iranian crude exports, and rising geopolitical tensions.
From the previous session’s close of $72.48 per barrel, Brent crude rose by 0.3% to $72.71 per barrel. In contrast to its previous close of $69.05, the U.S. benchmark, West Texas Intermediate (WTI), increased by 0.4% to $69.30 a barrel.
On Friday, former U.S. President Donald Trump signaled potential ‘flexibility’ regarding the reciprocal tariffs set to take effect on April 2. Addressing concerns over a one-month tariff exemption for automakers in March, Trump reaffirmed his stance while dismissing speculation that he had altered his position.
“Everybody said, ‘Oh, he changed his mind on tariffs.’ I didn’t change my mind… I helped some of the American companies,” Trump stated.
“The word ‘flexibility’ is an important word. Sometimes it’s flexibility. So there’ll be flexibility, but basically, it’s reciprocal,” he added.
Trump also announced plans to engage in discussions with Chinese President Xi Jinping, as China remains a key focus of his trade policies. Market analysts interpreted the exemption announcement as a signal that the U.S. administration might adopt a more balanced and negotiable trade strategy, which has been positively received in global markets.
Meanwhile, Trump signed an executive order on Monday imposing tariffs on countries importing Venezuelan oil.
According to the order, beginning April 2, a 25% tariff may be imposed on all goods imported into the U.S. from any country that imports Venezuelan oil, either directly or through third parties.
Analysts noted that the decision has pushed oil prices higher due to concerns over potential supply disruptions among major U.S. importers. However, the risk of significantly higher fuel costs for American consumers and rising cost pressures on import-dependent businesses has tempered these price gains.
Geopolitical Tensions and Supply Security
Simultaneously, unresolved tensions between Russia and Ukraine continue to drive price volatility. Despite U.S.-mediated peace efforts, security concerns over oil supply remain heightened.
On Monday, Russia accused Ukraine of targeting an oil pumping station in the southern Krasnodar region in an overnight drone attack.
According to a statement from the Russian Defense Ministry, Ukraine attempted to strike the Kropotkinskaya pumping station around 2 a.m. local time using a drone, which was intercepted seven kilometers (4.3 miles) from the facility. Debris from the intercepted drone reportedly fell near the Kavkazskaya railway station, part of Russia’s North Caucasus railway network.
On Saturday, Kyiv allegedly launched two drone strikes on the Valuiki gas distribution station in the Belgorod region, damaging the facility’s infrastructure, the ministry claimed.
These charges follow reports that on Tuesday, Russia and Ukraine decided to temporarily suspend their strikes on one another’s energy facilities. Nevertheless, despite continuous diplomatic efforts by the United States to mediate a peace deal, allegations of attacks continue. Russia’s assertions have not yet received a response from Ukrainian officials.
