WTI crude oil futures fell 2.1% to below $67 per barrel on Monday after President Trump stopped short of announcing new sanctions on Russian oil, disappointing markets that had anticipated tougher action.
While Trump did warn of potential 100% secondary tariffs on Russia if a ceasefire isn't reached within 50 days, the absence of immediate measures weighed on prices.
Meanwhile, Trump's escalating global tariff threats, including 30% duties on EU and Mexican goods, dampened risk appetite and fueled concerns over weaker energy demand.
Traders fear that protectionist policies could hurt global growth and contribute to an oil supply glut later this year.
Hedge funds have responded by cutting bullish positions at the fastest pace since February.
Still, Chinese trade data offered some support, with crude imports rising and Iranian oil purchases climbing in June, signaling resilient near-term demand.
