KEY POINTS
- Oil prices dropped nearly 2%, impacted by demand concerns and geopolitical tensions.
- Beijing criticized Washington’s tactics, escalating the ongoing trade war.
- Progress in Iran nuclear talks stoked fears of an oversupply in the market.
Oil prices fell nearly 2% on April 28, 2025, driven by demand fears and progress on Iran nuclear talks. Brent crude was down 1.60%, trading at $65.80, while West Texas Intermediate (WTI) dropped 1.59%, at $62.02.
The market remained unsettled as the oil prices responded heavily to the ongoing trade war’s impact on demand.
Trade war escalates as Beijing criticizes Washington’s tactics
According to Oil Price, on April 28, Beijing lashed out at Washington’s negotiating tactics in the ongoing trade war. Zhao Chenxin, a deputy director in China’s National Development and Reform Commission, criticized U.S. bargaining methods.
He said Washington was “bullying” and “going back on their words,” intensifying tensions between the two nations.
Iran nuclear talks fuel oil market concerns
Progress in U.S.-Iran nuclear talks also influenced oil prices, stoking fears of an oversupplied market. A senior U.S. official said further progress was made over the weekend, hoping for non-weaponization assurances from Tehran.
The easing or reversal of sanctions on Iranian oil could flood the market and drive prices lower. However, Israeli Prime Minister Netanyahu is pushing for a tougher stance, demanding full dismantling of Iran’s nuclear infrastructure.
Trump remains adamant that the U.S. would not be “dragged in” by Israeli concerns.
