Oil prices sink as tariff uncertainty keeps investors on edge

Oil prices were lower on Monday as concern over the impact of U.S. tariff uncertainty and rising output from OPEC+ producers pressured the commodity, while potential sanctions on Iranian oil exports kept prices from falling farther.

Brent crude shed by 44 cents to $69.92 a barrel by 10:22 a.m. EDT (1522 GMT). U.S. West Texas Intermediate crude lost 40 cents to $66.64.

Last week marked WTI's seventh consecutive weekly decline, the longest losing streak since November 2023, while Brent fell for a third consecutive week.

U.S. President Donald Trump's protectionist policies have roiled markets across the world, with Trump imposing and then delaying tariffs on its biggest oil suppliers Canada and Mexico while also raising duties on Chinese goods. China and Canada have responded with tariffs of their own.

"This market is on tenterhooks and there's a lot to be processing as we move forward," said John Kilduff, partner with Again Capital in New York.

Investors view uncertainty over U.S. tariffs as negative, but possible sanctions against Iran and Russia could provide support in the short term, said PVM analyst Tamas Varga.

"Looking at the bigger picture, lingering uncertainties will likely make any oil rally brief," Varga said.

Oil rebounded from six-month lows on Friday after Trump said the United States would intensify sanctions on Russia if it fails to reach a ceasefire deal with Ukraine.