Oil retreated as trade deal doubts resurfaced and dollar strengthened
The market reversed course after US President dampened optimism over trade negotiations, stating there is only a “50-50” chance of reaching a deal with Europe ahead of a key deadline next week.
Global crude oil benchmarks closed lower on Friday, 25 July 2025, pressured by a stronger US dollar and renewed uncertainty over potential trade agreements between the United States and key global partners.
Brent declined 74 cents, or 1.1%, to settle at $68.44 per barrel.
WTI slipped 87 cents, or 1.3%, to end the session at $65.16.
The market reversed course after US President dampened optimism over trade negotiations, stating there is only a “50-50” chance of reaching a deal with Europe ahead of a key deadline next week. Trump also noted that most US tariff rates are now effectively set, placing the average rate at its highest level in a century—a development that could weigh on global energy demand.
Adding to the bearish tone, the US dollar index strengthened following remarks from Trump confirming that he does not intend to dismiss Federal Reserve Chair. The firmer greenback made dollar-denominated commodities, including crude oil, less appealing to holders of other currencies.
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