Muscat: Market reactions to U.S. President Donald Trump’s latest move against Brazil, alongside cautious signals from the Federal Reserve, contributed to the downward pressure.

Brent crude futures dropped 22 cents, or 0.31%, to settle at $69.97 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 27 cents, or 0.39%, to $68.11 per barrel.

The slide comes after President Trump imposed a 50% tariff on exports from Brazil—Latin America’s largest economy—on Wednesday. The move has fueled fears of an escalating trade environment that could hamper global economic growth and reduce demand for oil, a key energy source.

The market also absorbed the minutes from the Federal Reserve’s latest monetary policy meeting held on June 17-18, which showed only limited support among policymakers for an interest rate cut this month. Persistent inflationary concerns tied to the tariffs have kept the Fed cautious, as high interest rates typically raise borrowing costs and dampen fuel consumption.

While the tariff-related jitters weighed on prices, some support came from the latest Energy Information Administration (EIA) data. U.S. crude oil inventories rose last week, but gasoline and distillate stocks fell. Notably, gasoline demand surged by 6% to 9.2 million barrels per day, signaling stronger consumption as the U.S. enters peak summer