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Oil Hits Two-Month High After Trump Imposes 25% Tariff on Countries Trading With Iran

Markets now lean toward a first Fed rate cut by June after an in-line CPI print.

Overview

  • Brent settled at $65.47 (+2.5%) and WTI at $61.15 (+2.8%) as traders added a supply-risk premium tied to Iran and uncertainty around Venezuelan output.
  • Reuters reported that four Greek-managed oil tankers were struck by unidentified drones in the Black Sea while heading to the Caspian Pipeline Consortium terminal.
  • Trump announced the immediate 25% levy on any nation doing business with Iran, a move watched closely given China’s role as Tehran’s main oil customer.
  • U.S. December CPI rose 0.3% month over month and 2.7% year over year, with core up 0.2%, and interest-rate swaps fully priced a Fed cut by June 2026.
  • A reported Department of Justice criminal investigation into Fed Chair Jerome Powell and pressure on U.S. bank stocks curbed risk appetite, while Petrobras shares climbed with higher crude.