U.S. oil prices fell on Tuesday but later recovered after an official said President Donald Trump will put new pressure on Iran to stop its oil exports.
The order tells the U.S. Treasury to enforce economic sanctions on companies that do not follow the current restrictions.
West Texas Intermediate (WTI) crude was down 41 cents, or 0.6%, at $72.75 per barrel by 11:39 a.m. EST (1639 GMT), after falling more than 3% earlier in the day. Brent crude futures rose 18 cents, or 0.24%, to $76.14 per barrel.
Traders are watching for a phone call between Trump and Chinese President Xi Jinping, which may happen on Tuesday. The call may discuss a possible pause in new U.S. tariffs on Chinese imports. The U.S. started a 10% tariff on Chinese goods on Tuesday, and China responded with new tariffs on U.S. goods.
On Monday, Trump paused a 25% tariff on imports from Mexico and Canada for 30 days after both countries agreed to strengthen border security and crime enforcement. The delay also includes a 10% tariff on energy imports from Canada.
China’s new tariffs on U.S. crude oil may reduce U.S. oil sales to China. U.S. oil made up 1.7% of China’s crude imports in 2024, according to customs data.
