Trump's Tariff Threat on Iran's Trading Partners Sparks Oil Price Surge, Roils Global Markets

On January 13, 2026, U.S. President Donald Trump announced steep tariffs on any country trading with Iran, abruptly escalating trade policy and targeting a major OPEC producer. The move instantly fueled market fears of disrupted global crude supplies, injecting a significant "geopolitical premium" into oil prices amid existing domestic unrest in Iran.

Consequently, international benchmark Brent crude jumped 2.5% to settle at $65.47 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 2.8% to $61.15 per barrel, both hitting their highest levels since late October 2025.

The tariff announcement contributed to a broader market retreat on Wall Street, with major indices pulling back from record highs as investors also digested mixed bank earnings. This unilateral trade action threatens to destabilize global energy trade flows and amplify economic uncertainty.