Oil prices jumped on Thursday morning, after a US court blocked US president Donald Trump from imposing sweeping global tariffs.
The US Court of International Trade ruled that Trump exceeded his authority when he used an emergency law to issue global reciprocal tariffs on US trading partners.
In response, White House spokesman Kush Desai said in a statement: “It is not for unelected judges to decide how to properly address a national emergency.”
The administration filed a notice late Wednesday with the court stating that it planned to appeal the decision.
Read more: FTSE 100 LIVE: Stocks rise as US court ruling blocks Trump tariffs
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “In this rapidly evolving landscape the latest development is unlikely to be the last twist in the tale, and the administration has already lodged an appeal. The world will be watching closely as the United States legal system seeks to hold its highest office to account.”
“The potential roll back on tariffs has provided some support to brent crude prices,” he said.
Brent crude futures (BZ=F) were up 1.5% to $65.30 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) gained 1.7% at $62.87 a barrel.
Fears that Trump's tariffs could lead to an economic slowdown and impact demand for fuel have weighed on oil prices, so the ruling appears to have helped ease investor concerns.
“The prospect of fresh sanctions on Russian exports has also helped to reduce concerns of oversupply,” Nathan added. “Weekly US oil inventory figures are key numbers to watch out for today.”
Meanwhile, gold prices fell as the US court ruling eased some concerns about trade tensions and dampened the appeal of the precious metal as a safe haven asset.
In addition, the dollar strengthened on the back of the news, which weighed on gold prices. The precious metal is typically priced in dollars, so a stronger greenback makes it more expensive for foreign buyers.
Gold futures (GC=F) fell 0.6% at $3,303 per ounce at the time of writing, while the spot gold price edged 0.1% lower to $3,283.92 per ounce.
Investors flocked to gold in the wake of Trump's tariffs announcements, as the precious metal is considered to act as a hedge in times of economic and political uncertainty.
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In addition to the US court ruling, signs of progress around trade talks with the European Union (EU) have also helped ease investor concerns around tariffs.
