Oil Prices Drop Below $68 as Markets Brace for US Tariffs
In the global commodity market, prices of crude oil dropped below $68 per barrel amidst demand and supply uncertainties. The markets are bracing for President Donald Trump’s US tariffs to take effect, with ratings agencies estimating that the global economy will underperform expectations.
Also, persistent geopolitical tensions continued to weigh on sentiment while the OPEC+ group planned to supply; despite a weak demand outlook in China. The international benchmark Brent crude fell around 0.5% to $67.99 per barrel, down from $68.35 at the previous session’s close.
The US benchmark West Texas Intermediate (WTI) crude decreased by 0.6% to $65.26 per barrel, compared to $65.65 in the prior session. Oil prices fell ahead of US tariffs set to take effect on August 1, amid mounting concerns over the economic fallout of the move. Analysts warn that the Trump administration may adopt even more aggressive trade measures, heightening market risk perceptions.
Adding to the unease, Trump renewed his criticism of Federal Reserve Chair Powell, saying, “I know better than anybody what’s good for the Market, and what’s good for the US.” Treasury Secretary Scott Bessent also questioned the Fed’s institutional effectiveness, suggesting a broader reassessment may be warranted.
Meanwhile, geopolitical tensions continue to weigh on sentiment. Trump defended American strikes last month on three of Iran’s nuclear facilities, warning Tehran that Washington would strike again “if necessary.”
“We will do it again, if necessary!” Trump wrote on his Truth Social platform Monday, reacting to Iranian Foreign Minister Abbas Araghchi’s remarks that the facilities had been “seriously damaged.”
“Damages are very severe, they are destroyed,” said Iran’s Foreign Minister, Abbas Araghchi, on the Iran Nuclear Sites. In response, Trump wrote: “Of course they are, just like I said,” calling on CNN to fire one of its reporters and accusing the network of downplaying the success of US pilots who “OBLITERATED” the sites.
Escalating geopolitical risks are preventing a deeper slide in oil prices, as fears of potential supply disruptions persist.
In parallel, the UK announced 137 new sanctions targeting Russia’s energy sector. The Foreign Office said the measures aim to curtail Russia’s oil revenues and further paralyze its so-called “shadow fleet.” According to the statement, the new package directly targets 135 oil tankers involved in the illicit transport of $24 billion worth of cargo since early 2024.
It also increases pressure on those facilitating Russia’s shadow trade network, with two shipping firms named in the latest round. #Oil Prices Drop Below $68 as Markets Brace for US Tariffs Lafarge Africa Q2 2025: A Resilient Growth Story Backed by Sound Fundamentals
