Oil prices are on track for a weekly decline as concerns over U.S. tariffs weigh heavier on market sentiment than supply risks linked to Iran sanctions. Investors remain cautious as trade policy uncertainties continue to impact global demand expectations, offsetting fears of tighter crude supply.
The latest round of tariffs announced by former President Donald Trump has heightened concerns about slowing economic growth, reducing the outlook for oil consumption. While geopolitical tensions surrounding Iran persist, markets appear more focused on the broader economic risks tied to trade disputes.
Supply-side factors have provided limited support, with OPEC+ maintaining production levels while the U.S. continues to expand its output. Rising crude inventories have also pressured prices, reinforcing the bearish sentiment heading into the end of the week.
Global demand remains a key factor, with investors monitoring signs of slowing consumption in major economies. The impact of trade restrictions on industrial activity and transportation demand could further weigh on oil markets in the coming weeks.
While sanctions on Iranian exports have historically driven price volatility, the market appears more fixated on broader macroeconomic conditions. The dollar’s strength and expectations around central bank policies have also contributed to oil’s downside pressure.
For now, crude remains under pressure as traders balance supply risks against the negative impact of tariffs on global growth. Unless demand expectations improve, oil prices may continue to struggle despite geopolitical uncertainties.
