Oil prices remained mostly stable on Wednesday afternoon, as investors waited for the potential fallout from a failed nuclear deal with Iran, which could lead to military conflict. At the same time, the market was also anticipating a major tariff announcement from the Trump administration that could shake up the economy.
As of 2:47 p.m. ET on Wednesday, Brent crude was up 0.66%, trading at $74.98 per barrel. Meanwhile, the U.S. crude benchmark, West Texas Intermediate (WTI), rose by 0.80%, reaching $71.77.
Market attention remained focused on President Trump’s planned tariff announcement, referred to as “Liberation Day,” which was expected later in the day. Details about the tariffs were scarce, leaving investors uncertain and worried about the possibility of a global trade war.
Trump was scheduled to make the tariff announcement at 4:00 p.m. during the “Make America Wealthy Again” event in the White House Rose Garden.
Last week, Trump introduced 25% tariffs on all auto imports, including cars and parts made outside the U.S. These tariffs took effect on Wednesday, and retaliatory measures from Brussels, Mexico City, and Ottawa are expected.
Goldman Sachs has warned that Trump’s trade war could cost the global economy $1.4 trillion. In response, the bank downgraded its growth forecast for the UK, anticipating a slowdown due to the effects of the tariffs, according to a Bloomberg report on Wednesday.
Additionally, former Treasury Secretary Lawrence Summers cautioned that Trump’s tariff plan could trigger an economic shock, reducing productive capacity and leading to higher prices and job losses.
“This is the kind of event we typically discuss in terms of an oil-price spike, earthquake, or drought—a supply shock,” Summers told Bloomberg Television.
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