Oil prices fall amid concerns over escalating trade tensions
Brent crude futures were down 22 cents, or 0.31 percent, at IUSD 69.97 a barrel.
US West Texas Intermediate crude lost 27 cents, or 0.39 percent, to USD 68.11 a barrel.
The drop in oil prices comes amid escalating trade tensions between the US and Brazil, with the US president threatening to impose tariffs of up to 50 percent on Brazilian exports to the US market.
In contrast, Brazilian President Luiz Inacio Lula da Silva warned that his country may have a "reciprocal" response to these massive tariffs, which Washington intends to implement starting next August.
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Observer
10 hours ago
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Stocks mostly fall as Trump ramps up tariff threats
LONDON: Stock markets mostly retreated Friday as US President Donald Trump ramped up his trade war, threatening a higher blanket tariff and a 35-per cent levy on Canada. Trump dampened earlier optimism by firing off more than 20 letters to governments outlining new tariffs if agreements are not reached by August 1. Bitcoin meanwhile pushed on with its climb, reaching an all-time high above $118,000. The dollar was mostly higher against its main rivals, and oil prices gained. "The optimism from earlier in the week... is giving way to fears of an impending tariff surprise as the weekend approaches," said Jochen Stanzl, chief market analyst at CMC Markets. Wall Street's three main indices fell at the start of trading, with the S&P 500 and Nasdaq Composite coming off record-setting sessions. In Europe, where investors were awaiting news of Trump's new tariff level targeting the European Union, with a letter expected by the end of the week, the Paris and Frankfurt stock markets each dropped 0.8 per cent. "The fallout hasn't been more pronounced because the market still continues to view all of this as a point of negotiating leverage," said analyst Patrick O'Hare of Trump dialled up his trade war rhetoric on Thursday, warning that Canada faced a 35-per cent tax, while other countries would be handed blanket tariffs of up to 20 per cent, from the current 10 per cent. That came after he outlined plans to impose 50-per cent tariffs on copper imports, while threatening 200-per cent levies on pharmaceuticals, and hit Brazil with a new 50-per cent charge. The moves are the latest by the White House in a campaign it says is aimed at ending decades of the United States being "ripped off". Trump's initial bombshell announcement of tariffs on April 2 sent markets into turmoil until he paused them for three months, and the latest measures have had less impact. London's FTSE 100 and the pound retreated after data showed the UK economy unexpectedly shrank in May -- its second consecutive monthly decline. That followed a mixed session in Asia, where Hong Kong rose, Tokyo fell and Shanghai flattened by the close. Shares in BP jumped 2.4 per cent in London after the energy giant said it expected to report higher oil and gas production for its second quarter. - AFP
Times of Oman
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Gold's rally awaits clarity on US interest rates and dollar weakness: Report
New Delhi: Current bullion market is focusing on a combination of factors which includes direction of US interest rates, weakness in USD, among many others factors for further guidance, noted a recent report by Emkay Wealth Management. The direction of US interest rates, which as of now is unclear about its likely impact on the tariffs on the US retail prices, which means that one of the major triggers for gold is absent. While the second major factor could be the weakness in the US Dollar against other currency majors. This can happen only with a sustained fall in the US Dollar yields and interest rates, the report said. Gold and the US dollar usually have an inverse relationship. Whenever dollar weakens, gold becomes cheaper for other currencies, increasing demand and often impacts its price, and vice-versa. However, the strength in the dollar and firming US bond yields over the last two weeks have added downward pressure on the gold prices. The report sees technical support for gold at USD 3,297 and USD 3,248. "What we need to see is a further fall in the Dollar caused by official rate cuts and a fall in market yields. There is a strong view that with the new budgeted spends to the tune of USD 4.60 trillion, the situation could become murkier because the resultant borrowings may put upward pressure on the yields," Emkay Wealth Management said. Along with that, a pattern of consolidation is currently being observed in the gold market, which typically leads to an increase in gold prices. The report further adds that, earlier this year, gold prices went up due to buying from China. However, towards the end of April and the beginning of May, when China reported a sell-off, that factor later became unnecessary in the bigger picture.
Times of Oman
a day ago
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Trump announces 35 per cent tariffs on goods imported from Canada
Washington, DC: US President Donald Trump on Thursday (local time) announced that the US will impose a tariff of 35 per cent on imports of goods from Canada. Trump sent a letter to Canadian Prime Minister Mark Carney to inform him about the tariff. Trump posted the letter sent to Carney on his social media platform, Truth Social. He said that Canada's failure to stop fentanyl from entering the US contributed to the tariff policy. In the letter, Trump wrote, "As you will recall, the United States imposed Tariffs on Canada to deal with our Nation's Fentanyl crisis, which is caused, in part, by Canada's failure to stop the drugs from pouring into our Country. Instead of working with the United States, Canada retaliated with its own Tariffs. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs." "Goods transshipped to evade this higher Tariff will be subject to that higher Tariff. As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely-In other words, in a matter of weeks," he added. In the letter, Trump threatened to increase the tariff rate by the same amount if Canada decides to increase their tariffs on importing American products. He also targeted Canada's tariffs on US dairy exports and called the trade deficit a major threat to the US economy and national security. In the letter, Trump wrote, "I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States. Canada charges extraordinary Tariffs to our Dairy Farmers up to 400%-and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada. The Trade Deficit is a major threat to our Economy and, indeed, our National Security." "If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America," he added. Earlier on Wednesday (local time), Trump announced a 50 per cent tariff on imports from Brazil, starting August 1 and called the trial of former Brazilian President Jair Bolsonaro a "witch hunt", adding that the "trial should not take place." Trump also announced a fresh round of tariffs on imports from seven nations - Sri Lanka, Algeria, Iraq, Libya, the Philippines, Moldova and Brunei. These tariffs will come into effect on August 1. The White House has shared letters sent by Trump to leaders of these seven nations, which mentioned the tariffs they will face while exporting goods to the US. According to the letters, the US will impose a 30 per cent tariff on goods imported from Sri Lanka, Iraq, Algeria and Libya. In the letters, Trump mentioned that Moldova will face a tariff of 25 per cent when exporting goods to the US. According to the letters, imports from Brunei will face a 25 per cent tariff while the Philippines will be facing 20 per cent. In the letters, Trump threatened to increase the tariff rate by the same amount if the countries decided to raise their tariffs on importing American July 8, Trump announced that tariffs would come into effect on August 1, 2025, and must be paid without any extensions. In a post shared on his social media platform Truth Social, Trump stated, "As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 - No extensions will be granted. Thank you for your attention to this matter!" Earlier on Monday, Trump shared letters sent by his administration to 14 countries, informing them of the reciprocal tariffs that will take effect from August 1. He sent letters to leaders of Japan, South Korea, Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Thailand, Bangladesh, Indonesia, Tunisia, Bosnia and Herzegovina, Serbia and Cambodia.
