Oil prices hit $100 as Trump tariffs take effect
Brent crude surged after Houthi attacks on Saudi tankers, while new Trump tariffs hit imports from 59 countries and the EU.
By Daniel Okafor · Business Editor
3 min read
Oil prices and tariffs put fresh pressure on households and businesses Thursday, as Brent crude climbed to $100 a barrel and President Trump imposed a new set of import duties. NPR reported that the oil jump followed attacks by Iran-backed Houthi rebels on two Saudi oil tankers in the Red Sea, while the tariffs took effect as an earlier global levy expired.
NPR’s Hadeel Al-Shalchi told Up First that Brent crude rose more than 6% to its highest level since May. The increase is expected to raise costs for everyday goods, including school supplies and fresh food, and NPR reported that shipping companies such as UPS are adding fuel surcharges.
Why did oil prices hit $100?
The price rise followed Houthi attacks on two Saudi tankers in the Red Sea, according to NPR. The Houthis said they entered the war in response to Saudi Arabia’s siege of Yemen and attacks on the international airport in the capital.
The group also threatened earlier this week to block the Bab el-Mandeb Strait, NPR reported. The strait is a key passage for oil and fuel shipments, adding to concern over the Strait of Hormuz, where the U.S. and Iran have been fighting for control.
The oil market pressure comes as the war in Iran continues to widen. NPR reported that the U.S. has launched strikes on Iran in the past two weeks, while Iran has targeted American bases in the Gulf and Jordan, affecting global energy markets.
The House on Wednesday approved a non-binding resolution calling for U.S. forces to be removed from the war in Iran. NPR said the vote marked the second House rebuke since the conflict began and reflected lawmakers’ objection to a war they did not vote to authorize.
Senate Democrats later tried to advance their own war powers measure, but it failed 47 to 49, according to NPR. Al-Shalchi also reported that some foreign missions have reduced their presence in Iran as the conflict continues.
What are the new Trump tariffs?
The Trump administration announced overnight that it is placing tariffs on 59 countries and the European Union, NPR reported. The new duties have two rates, 10% and 12.5%, and took effect at midnight.
The timing coincided with the expiration of a 10% global tariff that the Supreme Court had struck down earlier this year. The administration said the new tariffs target countries importing goods made with forced labor.
NPR reported that the tariffs apply to more than 99% of imports into the United States. Major categories including energy and many foods remain exempt.
The measures follow proclamations Trump signed earlier this week imposing 50% tariffs on some Canadian goods. NPR’s Danielle Kurtzleben said polling shows Americans broadly disapprove of tariffs and that approval of Trump’s handling of the economy has fallen.
Kurtzleben reported that Trump sees tariffs as a way to pressure other countries into concessions, including on trade deals. The administration says the policy will produce long-term economic benefits, while some economists warn it is risky to ask voters to support an unpopular policy when the outcome remains uncertain.
This story draws on original reporting from NPR World.