09:17 AM EST, 02/28/2025 (MT Newswires) -- Oil prices fell early on Friday amid market uncertainty over the impact of U.S. President Donald Trump's decision to impose a 10% tariff on oil and gas imports from Canada, its largest supplier, while tightening sanctions on Venezuela and Iran.

West Texas Intermediate crude oil for April delivery was last seen down US$0.82 to US$69.53 per barrel, while April Brent crude was also down US$0.82 to US$73.22.

Trump on Thursday revoked Chevron's (CVX) license to export 240,000 barrels per day of Venezuelan oil and earlier this week tightened sanctions on Iranian exports. He also said Canadian energy imports will be taxed beginning on Tuesday, when a 25% levy on goods imports from Canada and Mexico, the two largest U.S. trading partners, will take effect.

The tariffs and sanctions come as the U.S. Administration swings its support to Russia in its war on Ukraine, raising the prospect of loosened sanctions on the OPEC+ member's oil exports, which would boost the likelihood of an over-supplied market as OPEC+ plans to begin reversing 2.2-million barrels per day of production cuts in 18 monthly tranches beginning in April, while non-OPEC supply is on the rise.

"The choices of not adhering to US wishes will see tariffs or sanctions run economies ragged. If Canada, Mexico and Iran cave and if Venezuela once again plays nice or at least pretends to; if Russia is gifted an appeasing Ukraine deal and OPEC+ puts more oil to market, prices can move only one way," PVM Oil Associates noted.