A quick history of two stories that keep coming back
The World Cup is over, and with the noise gone, two familiar headlines are back at the top of the news: new tariffs, and oil prices climbing again. If that sounds like déjà vu, it’s because it is. Both stories have been swinging back and forth for a year and a half, this week just happens to be the moment both cycles peaked at once.
Here’s the timeline, so the next time these headlines resurface (and they will), you’ll recognize the pattern instead of reacting to it as breaking news.
The market’s direction changed quickly after this article was published. The United States and Iran paused attacks and resumed diplomatic discussions, easing immediate fears of a major oil-supply disruption. Oil prices fell sharply, Treasury yields declined, and U.S. stocks stabilised.
That reversal reinforces the story below. In just a few days, oil moved from above $100 a barrel to the mid-$80s as markets shifted from pricing in escalating conflict to anticipating possible de-escalation. The underlying geopolitical risk remains, but the speed of the reversal is a reminder of how quickly markets can change—and why reacting to every headline can be costly for long-term investors.
Source: CNBC, Stock Market Today Live Updates (July 28, 2026) and Reuters, July 28, 2026.
Tariffs: announced, paused, challenged, replaced — repeat
Tariff headlines can feel random from week to week, but they aren’t really: they follow a shape. A new tariff gets announced, and markets react immediately, often before it even takes effect. Then it gets delayed, narrowed with exemptions, or rolled back partway, usually under pressure from trading partners or businesses that would absorb the cost. It gets implemented anyway, at least in part. Someone challenges it in court. And by the time a ruling actually goes against it, the administration has typically already rebuilt something similar under a different legal authority, so the tariff itself doesn’t really go away, it just changes its legal basis. Here’s how that’s played out over the last year and a half:
January–April 2025: New tariffs were announced on Canada, Mexico and China, delayed, partially reinstated, then expanded into a broader global tariff program on April 2. Markets dropped. A week later, the higher country-specific rates were paused for most countries, but the tariff war with China kept escalating, with rates eventually reaching triple digits.
May 2025: The U.S. and China agreed to a 90-day truce, cutting those triple-digit rates down sharply. Earlier tariffs stayed in place. This was a partial rollback, not a full one.
May–August 2025: Courts got involved. The U.S. Court of International Trade ruled the administration had exceeded its authority on the emergency-based tariffs. An appeals court paused that ruling while the case worked through appeal. The tariffs stayed in effect the whole time.
February 2026: The Supreme Court invalidated that emergency tariff structure entirely. Within days, the administration replaced it with a different, temporary 10% surcharge under separate legal authority, set to expire in 150 days.
March–July 2026: A separate investigation, this one into forced-labor practices across 60 economies, led to new proposed tariffs. On July 24, the same day the temporary surcharge expired, those new tariffs (10% or 12.5%, depending on the country) took effect.
(Source: Reuters, The White House, various dates 2025–2026 — full citations below)
Oil: demand fears vs. supply risk, on repeat
Oil’s story runs on a different engine than tariffs: less about legal maneuvering, more about a tug-of-war between two fears pulling in opposite directions. One fear is that a slower economy will mean less demand for oil, which pulls prices down. The other is that a war, sanctions, or a threat to a major shipping route will disrupt the physical supply of oil, which pulls prices up fast. Watching which of those two fears is winning at any given moment tells you most of what you need to know about why oil is moving:
2025: Tariff-related fears about slower global growth pushed oil lower most of the year, helped along by OPEC+ increasing production. Oil briefly spiked in June 2025 during an Israel-Iran conflict, then reversed just as fast once shipping through the Strait of Hormuz remained open and a ceasefire looked likely.
Early-to-spring 2026: Renewed conflict involving the U.S., Israel and Iran put shipping risk back in focus. Oil swung sharply above and below $100 for months, moving with each escalation or ceasefire report.
June 2026: A peace agreement and hopes for restored shipping through the Strait of Hormuz pushed oil sharply lower. Gasoline prices eased too.
July 2026: Renewed attacks initially reversed the previous decline. Gasoline crossed $4 a gallon nationally on July 20, and Brent crude closed above $100 on July 23 as attacks affecting tanker traffic heightened concerns about global oil supplies.
But the move reversed almost immediately. Following a pause in attacks and renewed diplomatic efforts, Brent crude fell sharply into the mid-$80s. The episode was another reminder that oil markets can react just as quickly to signs of de-escalation as they do to conflict.
(Source: Reuters, U.S. Energy Information Administration — full citations below)
Why this matters for your money
Tariffs and oil aren’t the same story, but they hit the same place: your wallet. Tariffs can raise the price of things you buy such as clothing, electronics, and furniture. Higher oil raises what you pay to get anywhere and get things delivered. When both move at once, like this week, it adds up faster than either one alone.
The most useful thing to take from 18 months of this pattern isn’t a prediction about what happens next: nobody can call that reliably. It’s recognizing that this is a cycle, not a one-time shock. Headlines like this will keep coming back. A financial plan that’s built to hold up through cycles beats one that reacts fresh to every headline.
What actually helps when headlines keep cycling
None of this timeline is a signal to do something dramatic with your money. If anything, it’s the opposite. A few principles hold up better than reacting to any single headline:
- Take the emotion out of it. Oil spiking or a new tariff taking effect can feel urgent in the moment. Investing decisions made from that kind of urgency are usually the ones people regret later.
- Focus on what you can actually control. You can’t control tariff policy or Middle East shipping routes. You can control your own financial habits — what you spend, what you save, what you automate.
- Consistency beats timing. Contributing on a regular schedule, regardless of what’s in the headlines that week, tends to smooth out exactly this kind of noise over time.
- Think long term. An 18-month rollercoaster looks a lot less scary when you’re planning in years or decades, not weeks.
- Diversification. Not being overly exposed to any single sector or story (like energy, or companies dependent on imported goods) limits how much any one cycle can affect you.
- Don’t try to beat the market. Trying to time entries and exits around news cycles like this one is exactly the instinct that consistency and diversification are designed to protect you from.
For more on this way of thinking, this short video from Finhabits founder Carlos García is a good watch:
This material is provided for informational purposes only and is not intended to offer investment, legal, or tax advice. All images and figures are for illustrative purposes. Investment advisory services are offered through Finhabits Advisors LLC, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. Past performance is not indicative of future returns. All investments involve risk, including the possible loss of principal. Securities are offered through Apex Clearing Corporation, Member of FINRA, SIPC. Securities held at Apex are protected up to $500,000, which includes a $250,000 cash limit. See SIPC.org for more details.
© Finhabits, Inc. All rights reserved.
Sources
- Reuters: North America braces for new Trump tariffs as Saturday deadline nears (Jan 31, 2025)
- Reuters: Trump pauses tariffs on Mexico and Canada, but not China (Feb 3, 2025)
- The White House: Regulating Imports With a Reciprocal Tariff (Apr 2, 2025)
- Reuters: Trump pauses many tariffs but increases pressure on China (Apr 9, 2025)
- Reuters: IEA cuts 2025 world oil-demand growth forecast on trade tensions (Apr 15, 2025)
- Reuters: Global stocks rally after U.S. and China pause tariff war (May 12, 2025)
- Reuters: U.S. court blocks most Trump tariffs, says president exceeded his authority (May 28, 2025)
- Reuters: Oil hits five-month high after U.S. hits key Iranian nuclear sites (Jun 23, 2025)
- Reuters: Most Trump tariffs are not legal, U.S. appeals court rules (Aug 30, 2025)
- U.S. Energy Information Administration: U.S. gasoline prices declined in 2025
- The White House: Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems (Feb 20, 2026)
- Reuters: U.S. opens unfair-trade-practices probes of 60 countries over forced labor (Mar 13, 2026)
- Reuters: Oil moves lower as markets assess U.S.-Iran peace agreement and restoration of supply (Jun 16, 2026)
- Reuters: U.S. pump prices cross $4 again amid renewed fighting in the Middle East (Jul 20, 2026)
- Reuters: Oil prices rise as U.S.-Iran tensions escalate (Jul 23, 2026)
- Reuters: Oil set for weekly rise amid Red Sea shipping attacks and supply concerns (Jul 24, 2026)
- The White House: Actions by the United States in the Investigations Under Section 301 of the Trade Act of 1974 (Jul 23, 2026)
- Reuters: Trump imposes forced-labor tariffs on 60 trading partners as temporary tariff expires (Jul 24, 2026)
- CNBC: Stock Market Today Live Updates (Jul 28, 2026)
- Reuters: Oil falls as U.S.-Iran tensions ease and diplomatic efforts resume (Jul 28, 2026)



