Oil prices slipped in choppy trading as investors weighed a mix of political and market developments from the Trump administration.
Brent crude eased toward $74 a barrel despite fresh U.S. sanctions targeting entities connected to Iranian oil shipments. At the same time, President Trump confirmed that tariffs on Canada and Mexico—two of the United States’ largest foreign crude suppliers—are still set to take effect next month, adding uncertainty to near-term supply dynamics.
Meanwhile, Chinese markets weakened as concerns grew about a wider economic decoupling between the world’s two largest economies. Those worries, combined with ongoing questions about OPEC+ production decisions and reports of a possible restart of pipeline exports from Iraqi Kurdistan, have left oil trading trapped in a relatively narrow range.
Market participants said the combination of geopolitical risks, potential supply shifts and weaker demand signals from China has produced heightened volatility but no clear directional trend. With sanctions expected to disrupt certain flows while tariffs and slowing Chinese activity could dampen demand, traders have been reluctant to push prices sharply higher or lower without clearer information on the evolving balance.
Analysts note that any confirmation of significant production cuts by OPEC+ or a sustained restart of Kurdish exports could swing the market, just as stronger-than-expected Chinese data or an easing of U.S. trade tensions might support a more decisive rally. For now, oil appears to be consolidating around current levels as participants wait for clearer policy signals and macroeconomic updates.