West Texas Intermediate increased to $60 a barrel after jumping over 6% in the previous three sessions. Meanwhile, Brent closed below $64 on Monday.
Trump
on social media said the new duty will be "effective immediately", without providing more details about the scope or implementation of the charges.
While oil price moves were relatively muted because of the lack of clarity on Trump’s latest edict, any new tariffs threaten to reignite a trade war with China, the world’s top crude importer and the buyer of about 90% of Iran’s total exports. For now, traders are seeking protection against spikes — with attempts to hedge moves boosting the volume of Brent call options to an unprecedented level on Monday.
The possibility of a disruption to Iran’s daily exports, which account for just under 2% of global demand, has tempered concerns over a global glut that has seen prices trend downward since mid-June. Iranian oil stockpiles at a key export terminal are about a fifth lower than where they started the year, a possible sign the country is moving crude out of harm’s way amid the wave of unrest.
Elsewhere, supply from Kazakhstan is being hampered by bad weather, maintenance and damage by Ukrainian drones on Russian infrastructure.
With inputs from Bloomberg
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