Oil prices climbed alongside stock markets after a U.S. trade court ruled that many of President Donald Trump’s global tariffs are illegal.
The Court of International Trade in New York said Trump exceeded his authority by imposing sweeping tariffs under an emergency law, which the court found does not grant the president power to unilaterally set tariffs on most countries.
Brent crude oil rose toward $66 a barrel following a 1.3% gain the day before. The tariffs had unsettled global markets and raised concerns about economic growth and commodity demand.
The Trump administration quickly appealed the ruling, which affects tariffs on major trade partners including China, the top importer of crude oil.
Meanwhile, Libya’s eastern government threatened to halt oil production and exports after a militia attacked the state oil company’s headquarters, underscoring ongoing risks to supply from the OPEC+ producer.
Oil prices have been under pressure since mid-January due to fears about the impact of tariffs and increased output from OPEC+ members. The group plans to meet soon to decide production levels for July, with expectations of a significant supply increase.
Market analysts see the court ruling as a short-term positive for risk appetite but caution that supply concerns remain. The American Petroleum Institute reported a 4.2 million barrel drop in U.S. crude inventories last week, with official government data pending.
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