Oil Hits $65.64 After US Court Blocks Trump Tariffs

Oil prices climbed on Thursday after a U.S. court blocked most of former President Donald Trump’s broad “Liberation Day” tariffs. The ruling eased concerns about rising trade tensions that had unsettled global markets. Investors also watched for possible new U.S. sanctions on Russian oil exports and awaited an OPEC+ decision on increasing production in July.

As of 4:37 GMT, Brent crude rose by 1.14 percent to $65.64 per barrel. U.S. West Texas Intermediate crude gained 1.26 percent, reaching $62.62 per barrel.

The U.S. Court of International Trade ruled on Wednesday that Trump exceeded his authority when he imposed global tariffs on imports from several key trading partners. These tariffs were part of the “Liberation Day” plan announced earlier this year. The court did not review other industry-specific tariffs on steel, aluminum, and automobiles that were issued under a different law and remain in effect.

This ruling raised investor confidence across markets that had been anxious about the impact of tariffs on economic growth. Stock markets in Asia and futures on Wall Street increased after the news. However, the Trump administration has filed an appeal, suggesting that this relief might be temporary and that the case could reach the U.S. Supreme Court.

Earlier this year, Trump imposed “reciprocal tariffs” on multiple countries, which raised fears of a global recession. Many of those country-specific tariffs were paused within days, but the threat of trade conflicts remained.

The oil market is also dealing with other supply risks. There are concerns about new potential U.S. sanctions on Russian crude exports, which could limit oil supplies further and support higher prices. At the same time, OPEC+ members are expected to meet on Saturday to discuss increasing oil production starting in July. Analysts predict that the group will approve an additional supply boost of 411,000 barrels per day and may continue similar increases through the third quarter to protect their market share.

Chevron, one of the largest U.S. energy companies, recently stopped oil production in Venezuela after the Trump administration revoked its license in March. Venezuela canceled shipments to Chevron in April due to payment uncertainties tied to U.S. sanctions. Before this, Chevron was exporting about 290,000 barrels per day of Venezuelan oil, which was over a third of the country’s total production. This disruption adds pressure on the global oil supply.

A wildfire in Alberta, Canada, has forced temporary shutdowns of some oil and gas operations, potentially reducing output. Alberta is Canada’s largest oil-producing region, and such events can affect supply in the short term.

Investors are also waiting for the latest U.S. oil inventory reports from the American Petroleum Institute and the Energy Information Administration. Expectations are that crude oil and gasoline stocks fell last week, while distillate inventories like diesel rose.

The combination of legal developments, potential sanctions, supply interruptions, and upcoming OPEC+ decisions keeps the oil market uncertain. While the court ruling temporarily reduces trade worries, ongoing risks support the possibility of higher oil prices in the coming months.