Oil prices remained largely stable on Tuesday as investors weighed the potential impact of U.S. tariff threats on European countries resisting President Donald Trump’s bid to acquire Greenland.
Brent crude for March delivery rose 23 cents, or 0.36%, to $64.17 a barrel by 1126 GMT, while U.S. West Texas Intermediate gained 13 cents, or 0.2%, reaching $59.57.
Concerns over a renewed trade war surged after Trump announced plans to impose 10% tariffs from February 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain. The levy could increase to 25% from June 1 if no agreement on Greenland is reached.
European Commission President Ursula von der Leyen responded on Tuesday, saying the bloc is preparing measures to support Arctic security and described the tariffs as a mistake.
Despite political tensions, analysts said the threats are unlikely to have an immediate effect on global oil supply.
PVM analyst Tamas Varga noted that oil prices were buoyed by the International Monetary Fund’s upward revision of global economic growth forecasts for 2026.
Stronger diesel prices also provided additional support for crude markets, helping offset trade war concerns.
Investors continue to monitor the evolving geopolitical situation in Greenland and its potential ripple effects on international trade and energy markets.
Market watchers emphasize that while tariffs could escalate tensions, short-term oil fundamentals remain grounded in economic growth expectations.
Oil traders are now balancing geopolitical risks with macroeconomic signals, keeping the market cautious but relatively stable.