Oil Prices Dip Below $68 as US Tariff Threat, Tensions Rattle Markets

Crude prices fell below $68 a barrel on Monday, as global markets braced themselves for the economic fallout of imminent US tariffs and simmering geopolitical tensions.

Global benchmark Brent crude fell 0.5% to $67.99 a barrel, from $68.35, and US West Texas Intermediate (WTI) lost 0.6% to $65.26, from $65.65 in the previous session.

Investor sentiment faltered as President Trump’s new tariffs, set to take effect August 1, sparked renewed concerns over global economic slowdown.

Middle East tensions also weighed on oil markets, limiting a more precipitous drop in prices. Trump defended recent US strikes on three Iranian nuclear facilities, warning Tehran that America would “do it again, if necessary.” Iranian Foreign Minister Abbas Araghchi stated the facilities were “seriously damaged,” with Trump celebrating their destruction and lashing out at US media for allegedly downplaying the strikes.

At the same time, weak demand outlook from China and OPEC+’s determination to maintain steady supplies have also influenced market sentiment. Despite such drags, escalating geopolitical risks are causing oil traders to tread cautiously, with fears of potential supply disruptions limiting a sharper fall.

Meanwhile, the UK imposed 137 additional sanctions on Russia’s energy sector that targeted 135 tankers transporting illegal oil worth $24 billion and two shadow trade firms, adding more uncertainty to the global energy market.