Brace yourself, oil just got more expensive, and the ripple effects might be coming for your wallet next.
In a dramatic turn of events, oil prices surged by over $1 per barrel after a U.S. court struck down a major chunk of former President Donald Trump’s tariffs. Brent crude is now trading at $66.02, while West Texas Intermediate (WTI) has jumped to $62.98.
This isn’t just about numbers on a screen, this could affect everything from the cost of filling your gas tank to the price of groceries.
Trump May Have Overstepped His Territory
A U.S. trade court just ruled that Trump overstepped his authority by slapping broad tariffs on foreign imports. While the court didn’t touch industry-specific tariffs (like those on cars and steel), it sent a clear message: those sweeping trade moves are no longer untouchable.
The immediate market reaction is relief and volatility rolled into one.
“Markets are positive since Donald Trump got the setbacks on the tariffs,” says Bjarne Schieldrop, chief commodities analyst at SEB.
“That’s less headwind for the global economy, so more demand for oil because the machine of the global economy moves better and faster.”
In essence, more demand equals more imports.
It is Not Just Wall Street Drama
It could also hit you.
Gas prices could rise fast, transport costs go up, food and goods get more expensive, air travel tickets may increase in price, and energy bills? Yep, they’re in the danger zone too.
With oil already climbing, any additional pressure, whether geopolitical, supply-related, or policy-driven, could push prices even higher.
As If That Wasn’t Enough
There’s more chaos on the horizon.
OPEC+ is meeting this weekend, and they might decide to hike output in July. If they don’t, we’re in for tighter supply and even higher prices.
Russia could face new U.S. sanctions, which would further restrict global oil supply. That’s bad news for countries already scrambling to meet energy demands.
Chevron has pulled the plug on its Venezuela operations, cutting off access to over 290,000 barrels per day, which is a third of Venezuela’s output.
Combine all this with wildfires in Canada shutting down oil production, and you’ve got a perfect storm of shrinking supply and rising demand.
What You Can Do (Before It Gets Worse)
If you’re wondering how to prepare, here’s a quick action plan:
Top off your gas tank now because prices may rise in the coming days. Review your energy usage too; home heating and electricity could get pricier.
Also, if you invest, watch oil and energy ETFs, as volatility could mean opportunity (or risk).
Finally, plan ahead. It’ll help you avoid last-minute travel or big purchases that depend on fuel.
