Beirut: A steep drop in crude oil prices largely due to U.S. President Donald Trump’s tariffs will squeeze budgets of emerging market oil exporters, analysts said, while the potential economic slowdown could also curb any benefits for importers.

According to National News Agency – Lebanon, concerns about the impact of a tit-for-tat trade war on global growth and demand for oil sent Brent crude prices plummeting by more than 20% within a week to a four-year low after Trump announced his sweeping tariffs on April 2.

The sudden decline in oil prices poses significant challenges for countries that rely heavily on oil exports as a major source of revenue. With reduced income from oil, these nations may face budgetary constraints, potentially impacting public spending and economic stability.

Meanwhile, for oil-importing emerging markets, the drop in oil prices might offer some relief in terms of reduced import costs. However, the broader economic slowdown triggered by trade tensions could offset these benefits, affecting overall economic growth and development prospects.