Oil prices rise on the first day of trade after the US imposed tariffs on Canada and Mexico, with analysts divided on the long-term impact.

Oil surged as President Donald Trump placed hefty tariffs on a range of imports including crude from Canada and Mexico, threatening higher costs for consumers. Most Read from BloombergWhen French Comm

"Despite the 'energy emergency' claims, the US is producing energy in record quantities," JPMorgan Asset Management wrote.

U.S. West Texas Intermediate crude futures were at $73.97 a barrel, up $1.44, or 2%, by 0042 GMT, after hitting more than a week's high at $75.18 a barrel earlier in the session. Brent crude futures rose 62 cents,

Oil rose in late trading after US President Donald Trump said the US would impose tariffs on imports of crude, a move that threatens to disrupt flows across North America’s tightly integrated energy market.

U.S. stock-index futures were expected to open lower Sunday night after President Donald Trump announced heavy tariffs on imports from Canada, Mexico and China, as investors braced for volatility across financial markets.

Oil prices jumped at the market open on Monday after U.S. President Donald Trump imposes tariffs on Canada, Mexico and China, raising fears of a trade war and disruption in crude supply from two of the United States' biggest suppliers.