SINGAPORE: Oil prices fell by as much as 3 percent on Thursday after US President Donald Trump announced sweeping new tariffs that investors worry will enflame a global trade war that will curtail economic growth and limit fuel demand.

Brent futures were down $1.97, or 2.63 percent, to $72.98 a barrel by 9:35 a.m. Saudi time after dropping by as much as 3.2 percent earlier, the biggest daily percentage decline since March 5.

US West Texas Intermediate crude futures were down $2.01, or 2.80 percent, to $69.70 after slipping by as much as 3.4 percent earlier.

Trump on Wednesday unveiled a 10 percent minimum tariff on most goods imported to the US, the world’s biggest oil consumer, with much higher duties on products from dozens of countries, kicking into high gear a global trade war that threatens to drive up inflation and stall US and worldwide economic growth.

“The US tariff announcement clearly caught markets off guard. Pre-announcement speculation suggested a flat 15-20 percent tariff, but the final decision was more hawkish,” Yeap Jun Rong, market strategist at IG, said in an email.

“For oil prices, the focus now shifts to the global growth outlook, which is likely to be revised downward due to these higher-than-expected tariffs,” he added.

Imports of oil, gas and refined products were exempted from the new tariffs, the White House said on Wednesday.

The tariffs sent markets reeling on Thursday, with Japan’s Nikkei plunging to an eight-month low, China’s yuan dropped to its lowest levels in seven weeks and stock markets slumped in early Asia trade.

“We know it will be negative for trade, economic growth and thus oil demand growth. But we don’t know how bad it will be as the effects come a little bit down the road,” said Bjarne Schieldrop, chief commodities analyst at SEB.

On Wednesday, UBS analysts cut their oil forecasts by $3 per barrel over 2025-2026 to $72 per barrel, citing weaker fundamentals.

Traders and analysts now expect more price volatility in the near term, as the tariffs may change as countries try to negotiate lower rates or enact retaliatory levies.

Market participants are also waiting for clarity on OPEC+ production outlook as the group is meeting on Thursday.

The group is set to proceed with its schedule to raise oil output by 135,000 barrels per day in May, and discuss how to convince Kazakhstan to stop exceeding its output quota and plans to compensate for overproduction, sources told Reuters.

Reinforcing the bearish sentiment, the Energy Information Administration data on Wednesday showed US crude inventories rose by a surprisingly large 6.2 million barrels last week, against analysts’ forecasts for a decline of 2.1 million barrels.

Inventories gained amid a surge in imports from Canada, which had expected to be hit with tariffs on its crude shipments to the US

The EIA data also showed gasoline demand was lower last week and refinery runs were lower at a time of year that plants should be producing more fuel ahead of the summer driving season. 

RIYADH: Saudi Arabia’s newly announced real estate directives underscore the Kingdom’s commitment to increasing homeownership among its citizens, according to the finance minister.

The changes were initially announced in March, following a comprehensive study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs. 

The review examined land price dynamics and rental pressures in Riyadh and proposed a set of regulatory and planning solutions aimed at long-term market stabilization. 

Among the key provisions is the lifting of restrictions on land transactions and development in targeted areas of northern Riyadh. 

In an interview with Alekhbariyah, Mohammed Al-Jadaan said Crown Prince Mohammed bin Salman’s mandates are intended to raise the proportion of Saudi families who own homes to 70 percent by 2030 – up from 47 percent in 2016.

“The generous directives will contribute to reducing volatility and controlling the rise in real estate sector prices, and will also limit inflation in the Kingdom’s economy,” Al-Jadaan stated. 

The move authorizes the sale, purchase, division, and subdivision of land, as well as the issuance of building permits, across a 17-sq.-km area bordered by King Khalid Road and Prince Saud bin Abdullah bin Jalawi Road, and a 16.2-sq.-km section north of King Salman Road, extending to Abu Bakr Al-Siddiq Road and the Al-Qayrawan District. 

These areas, combined with previously released plots, bring the total available for development to 81.48 sq. km. 

Al-Jadaan said the expanded land access will tighten the supply and demand gap in the real estate sector by lifting restrictions on transactions and development in northern Riyadh. 

He noted that developers are expected to respond by expanding commercial and residential projects, ultimately easing price pressures. 

To further facilitate home ownership, the RCRC has been tasked with delivering between 10,000 and 40,000 fully planned and developed residential plots annually for the next five years. 

These will be priced at no more than SR1,500 ($399.87) per sq. meter and made available to married citizens or individuals over the age of 25 who do not currently own real estate. 

The issued plots will be subject to resale, rental, and mortgage restrictions for 10 years unless used to finance construction. If the land remains undeveloped within that time, ownership will revert to the government, with the buyer reimbursed. 

Al-Jadaan emphasized that these changes would improve access to financing. Saudi citizens will have better chances to obtain financial support to own a residential home or a commercial estate, he explained. 

Additional reforms include amendments to the white land fees system, to be implemented within 60 days, aimed at incentivizing the development of unused land. 

Within 90 days, the government will introduce new regulatory measures to ensure balanced relationships between landlords and tenants. 

The General Authority for Real Estate and the RCRC will monitor price trends and submit periodic reports to evaluate the effectiveness of the measures. 

Al-Jadaan further noted that these initiatives prove the Kingdom’s ability to stabilize the real estate sector’s volatility through entities, institutions, and regulations.