From Yahoo Finance: 2025-04-15 21:21:00

Oil prices rose nearly 2% on Wednesday to a two-week high due to concerns about global supplies after new sanctions were issued targeting Chinese importers of Iranian oil. Both Brent and U.S. crude futures settled higher, with benchmarks closing at their highest levels since April 3. The U.S. imposed sanctions to drive Iranian oil exports down to zero, coinciding with renewed negotiations over Iran’s nuclear program.

The International Energy Agency predicts global oil demand growth in 2022 will be the lowest since 2020, citing the impact of Trump’s tariffs on Chinese goods. Federal Reserve Chair Jerome Powell warned of economic effects, including higher inflation and slower growth. Trade tensions between the U.S. and China have led to uncertainty in economic growth prospects, prompting banks to cut their crude price forecasts.

China wants more respect from the Trump administration before agreeing to trade talks, according to a Bloomberg report. Analysts emphasize the importance of de-escalating the trade war to prevent a significant decline in economic growth and oil demand growth. Uncertainty over trade tensions has caused several banks to revise their crude price forecasts downward, reflecting the potential impact on global GDP growth.

China’s first-quarter GDP growth beat expectations at 5.4%, but analysts caution that this growth may not be sustainable throughout the year. The ongoing trade tensions between the U.S. and China could impact economic growth and oil demand growth significantly, with potential consequences for global GDP growth. The uncertainty surrounding trade negotiations has led to cautious forecasts from analysts regarding future economic and oil demand growth.

Read more: Oil up 2% to a 2-week high as new US sanctions target Iran’s exports