Oil Rises as US Court Blocks Trump’s Global Tariffs
Oil prices rose as investors in the global commodity market reacted to a US court decision to block President Donald Trump from imposing sweeping global tariffs on imports.
International benchmark Brent crude increased by around 1.62%, trading at $65.36 per barrel. Also. The US benchmark West Texas Intermediate (WTI) rose by about 1.69%, settling at $62.69 per barrel, compared to $61.65 in the prior session.
The US Court of International Trade ruled Wednesday that President Donald Trump overstepped his authority and blocked him from imposing sweeping global tariffs on imports, according to media reports.
The three-judge panel ruled in favour of a permanent injunction to Trump’s Liberation Day tariffs, which he implemented on April 2 without Congressional approval by invoking the International Emergency Economic Powers Act (IEEPA).
The ruling boosted risk appetite in global markets. The court’s decision has added another layer of uncertainty to the future of Trump’s tariff policy, particularly with the early-July deadline for enforcement approaching.
On the supply side, markets remain focused on the possibility of new sanctions against Russian oil. Trump warned on Tuesday that Russian President Vladimir Putin is “playing with fire,” as Moscow continues its strikes on Ukraine.
This comes after international media reported earlier in the week that Trump is considering fresh sanctions on Russia amid rising tensions over continued attacks in Ukraine and stalled peace negotiations.
Meanwhile, Russian Foreign Minister Sergey Lavrov said Wednesday that Moscow would announce a new round of negotiations with Ukraine “in the very near future.” The last round of direct talks between Russia and Ukraine was held in Istanbul on May 16, under Türkiye’s mediation.
Moreover, eight member countries of the OPEC+ group—which includes the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers— could decide to increase production during their meeting on Saturday.
This scenario deepens concerns about a potential supply surplus, particularly as weak demand continues to dominate market sentiment.
Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman had begun a gradual easing of their voluntary production cuts totaling 2.2 million barrels per day (bpd) as of April.
In May, the eight countries implemented a production increase of 411,000 bpd, equivalent to a three-month rise, and announced a similar increase for June. Tinubu Seeks Senate Approval of 2025-2026 External Borrowing Plan of $21.5bn
