Oil prices drop amid US tariffs, Ukraine ceasefire talks

ANKARA

Oil prices continued to fall Thursday as US President Donald Trump's 25% tariff on steel and aluminum imports took effect, alongside ongoing efforts toward a ceasefire in the Russia-Ukraine war.

The international benchmark, Brent crude, decreased by 0.19% trading at $70.56 per barrel at 10.50 a.m. local time (0750 GMT), down from $70.70 at the previous session’s close.

The US benchmark, West Texas Intermediate, fell by 0.05%, settling at $67.40 per barrel, compared to its prior session close of $67.44.

The implementation of the 25% tariff on steel and aluminum imports has raised concerns that it could lead to economic stagnation in the US, the world's largest oil-consuming country, reducing demand.

In addition to these tariffs, Trump, who has already imposed separate tariffs on Canada, Mexico, and China, plans to impose "reciprocal" tariffs on trade partners such as the EU, Brazil, and South Korea beginning on April 2.

While the EU retaliated against these tariffs, EU Commission President Ursula von der Leyen announced that they have taken measures worth €26 billion in response.

Canadian Finance Minister Dominic LeBlanc also announced a 25% tariff on imports totaling 29.8 billion Canadian dollars ($20.7 billion) in retaliation for the US steel and aluminum tariffs.

Experts warn that the reciprocal tariff decisions could slow economic growth and suppress energy demand in the short term, possibly triggering a new trade war in the long term.

Additionally, Trump's statement that Ukraine agreed to a 30-day temporary Moscow-Kyiv ceasefire during the talks between the US and Ukrainian delegations in Jeddah, Saudi Arabia on Tuesday also put downward pressure on prices.

Trump said the US has good relations with both sides, adding that a ceasefire deal “would be 80% of the way" to end the war in Ukraine.

He also said he would discuss the ceasefire with Russian President Vladimir Putin this week.