WTI Oil Prices Reach One-Month High Following Trump's Tariff Announcement on Iran Trade Partners

Trump's Tariff Announcement

On Monday, January 12, 2026, U.S. President Donald Trump declared that the United States would impose a 25% tariff on products imported from any country that engages in trade with Iran. This move is aimed at increasing economic pressure on Tehran, which is currently grappling with widespread internal protests.

Trump indicated that the tariff would take effect immediately, although he did not provide specific details regarding its implementation.

Heightened Security Concerns

The announcement was accompanied by a more aggressive U.S. stance on security matters. The President warned of potential military action against Iran, reigniting fears of disruptions to oil supplies from one of the world's major oil-producing nations.

These concerns have played a significant role in supporting oil prices, particularly in a market already sensitive to supply risks.

Broader Supply Tensions

However, supply tensions are not confined to the Middle East. Kazakhstan's oil production is currently facing several challenges, including adverse weather conditions, maintenance operations, and damage to Russian infrastructure caused by Ukrainian strikes.

These factors have heightened concerns regarding the short-term availability of crude oil.

Market Dynamics

Overall, these developments have counterbalanced expectations of an increase in global oil supply, which are linked to the anticipated recovery of Venezuelan oil exports.