Oil prices in Iraq dropped again as global trade tensions shook investor confidence. The growing trade war between the United States and the European Union has raised concerns about lower economic activity. As a result, many fear a slowdown in fuel demand, which directly affects crude prices.
Brent crude futures dropped by 52 cents, reaching $68.69 per barrel. Similarly, West Texas Intermediate crude also declined by 51 cents, hitting $66.69 per barrel. These drops continued a downward trend from the previous trading session.
The August contract for WTI crude expires soon, but the more active September contract already fell by 54 cents to $65.41. Investors remain cautious as uncertainty builds ahead of the possible U.S. tariff hike on EU goods.
The repeated phrase “trade war fears” continues to weigh heavily on the market outlook. With new U.S. sanctions on Russian crude adding more pressure, investors remain wary. At the same time, the threat of additional tariffs from both the U.S. and the EU fuels the ongoing anxiety.
Analysts point out that supply fears have calmed down for now. Increased oil production by major exporters, especially after the Israel-Iran ceasefire, has helped stabilize supply. Still, this hasn’t been enough to support prices amid rising trade tensions.
A weaker U.S. dollar helped support crude prices slightly, as buyers using other currencies find oil a bit cheaper. However, that support was not strong enough to offset the negative impact of trade war fears. The phrase “trade war fears” keeps coming up in market analysis, showing how dominant this concern has become.
The European Union is preparing a set of countermeasures against potential U.S. tariffs. If Washington follows through on its threat to impose a 30% tariff on EU imports, the situation could worsen. EU diplomats say a trade agreement appears increasingly unlikely.
Meanwhile, oil supply continues to rise. Data shows that Saudi Arabia increased its crude exports to the highest levels seen in three months. The Organization of the Petroleum Exporting Countries (OPEC) and its allies are slowly lifting their previous output cuts.
With demand at risk and supply on the rise, traders remain nervous. The key phrase “trade war fears” continues to be the center of all concerns.