Oil rises amid U.S. tariff threats

July 30, 2025 (MLN): Oil prices edged higher in early Wednesday trading, as concerns over potential supply shortages grew following U.S. President Donald Trump's ultimatum to Moscow to end the war in Ukraine.

Brent crude futures rose $0.11, or 0.15%, to $72.62 a barrel.

West Texas Intermediate (WTI) crude climbed $0.06, or 0.09%, to $69.27 per barrel by [12:30pm] PST.

Trump said he would start imposing measures on Russia, including 100% secondary tariffs on its trading partners, if it did not make progress on ending the war within 10-12 days, moving up an earlier 50-day deadline, on Tuesday.

The United States has warned China  that it could face steep tariffs if it continues its imports, Treasury Secretary Scott Bessent said during a press briefing in Stockholm, where U.S.-EU trade talks were underway.

Analysts at JP Morgan noted that while China is unlikely to adhere to U.S. sanctions, India has indicated a willingness to comply, potentially jeopardizing up to 2.3 million barrels per day of Russian oil exports.

Meanwhile, the U.S. and EU managed to sidestep a potential trade war by reaching an agreement that includes a 15% U.S. tariff on European goods, a move that eased fears over the economic fallout from trade tensions and lent additional support to oil prices.

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