Oil prices rose marginally in Asian trading on Friday but are heading for a third week of declines as Trump continues his renewed rhetoric about a trade war with China and threatens tariff hikes on other countries.

Brent crude futures rose 52 cents to $74.81 a barrel by 0735 GMT but were set to fall 2.5% for the week. WTI crude rose 44 cents to $71.05 a barrel, down about 2% weekly.

Oil prices regained some stability this morning after a volatile session overnight as the market reacted to news of U.S. sanctions on Iranian crude exports to China.

The U.S. Treasury Department said on Thursday it would impose new sanctions on people and tankers that help ship millions of barrels of Iranian crude to China annually, in a bid to increase pressure on Tehran.

Today’s oil gains were limited, reflecting persistent concerns about supply and demand headwinds, including the potential for production increases from OPEC+ and the U.S., and tariff risks affecting global oil demand.

Trump had announced a 10% tariff on Chinese imports as part of a broader plan to improve the U.S. trade balance, but he has suspended plans to impose higher tariffs on Mexico and Canada.

The downward pressure, tariffs and concerns about an expanding trade war are fueling fears of weakening oil demand.

The news overshadowed Trump’s executive order on Feb. 4 reinstating his maximum pressure campaign on Iran and plans to cut the country’s oil exports from 1.5 million barrels per day to zero.

Oil prices fell on Thursday after Trump’s policy of increasing U.S. oil production, rattling traders a day after the country reported a much bigger-than-expected increase in crude inventories.

Indices were also under pressure as US crude oil inventories rose sharply last week as demand eased due to ongoing refinery maintenance.