Oil resumes decline as trade war overshadows Iran tanker seizure

Oil resumed its decline as demand fears deepened after U.S. President Donald Trump threatened to slap more tariffs on China, countering concerns crude flows may be disrupted following Iran’s seizure of another ship.

Futures lost as much as 1% in New York after closing up 3.2% in the previous session. Trump said Friday he can raise tariffs on China to a “much higher number,” following his initial threat on Thursday that spurred the steepest one-day drop in crude prices in more than four years. Iran seized a foreign tanker in the Persian Gulf on July 31, the Revolutionary Guards said on their Sepah News portal Sunday, without giving any details about the vessel.

Asian stocks and currencies kept falling Monday on the escalating tension between the world’s two largest economies.