Oil Prices Dip as Trump’s Tariff Threats and Surprise U.S. Crude Build Shake Markets
Oil prices slid on Thursday as traders reacted to geopolitical uncertainty and an unexpected rise in U.S. crude inventories. President Donald Trump’s aggressive push to end the Ukraine war via steep tariffs raised concerns about global supply disruptions, while data showing a surprise increase in U.S. crude stockpiles added further pressure.
Brent crude futures for September delivery, set to expire today, dropped 61 cents (0.83%) to $72.63 per barrel by 13:26 GMT. U.S. West Texas Intermediate (WTI) crude for September also declined by 68 cents (0.97%) to $69.32. Both benchmarks had gained around 1% in the previous session.
“The market tends to overreact to Trump’s aggressive policy statements, only to later adjust when those plans shift quickly,” said Harry Tchiliguirian of Onyx Capital Group. “We’re seeing a temporary re-evaluation while awaiting more certainty.”
Trump warned that if Russia doesn’t make clear progress toward ending the Ukraine war within 10–12 days, he will impose 100% secondary tariffs on Russian trade partners—bringing forward a previously announced 50-day deadline. China, Russia’s top oil customer, has also been cautioned about facing severe penalties if it continues purchasing Russian crude.
In a related escalation, the U.S. Treasury introduced new sanctions against over 115 Iran-linked individuals, companies, and vessels, furthering the Trump administration’s “maximum pressure” strategy following June’s strikes on Iranian nuclear facilities.
Meanwhile, the U.S. Energy Information Administration reported a 7.7 million barrel increase in crude oil inventories last week, significantly above analysts’ expectations of a 1.3 million barrel draw. The rise was attributed to weaker export levels. 
However, gasoline inventories saw a sharp drop of 2.7 million barrels—far exceeding the forecasted 600,000 barrel decline—suggesting strong seasonal demand.
“The crude stock build was bearish, but the bigger-than-expected gasoline draw balanced market sentiment,” said analyst Toshitaka Tazawa of Fujitomi Securities.
