Oil prices dropped over 1% on Wednesday as rising U.S. stockpiles and concern about a new Sino-U.S. trade war fuelled fears of weaker economic growth, offseting U.S. President Donald Trump's renewed push to eliminate Iranian crude exports.

Oil futures fell Wednesday, feeling pressure after industry data showed a large rise in U.S. crude inventories and as investors feared a U.S. -China trade battle will dent demand.

Prices jumped on fears that U.S. tariffs on its major trade partners could disrupt supplies and raise prices at the pump.

Oil prices slid on Wednesday as rising stockpiles in the U.S. and market worries about a new Sino-U.S. trade war offset President Donald Trump's renewed push to eliminate Iranian crude exports. Brent crude futures were down 39 cents,

President Trump’s tariff on Canadian oil is expected to raise prices at the pump for U.S. consumers, if it takes effect as planned after a 30-day delay.

U.S. consumers will see higher prices at the gas pump from President Donald Trump's decision on Saturday to apply tariffs on Canadian and Mexican oil, according to analysts and fuel traders. The likely hike in fuel prices reflects the double-edged nature of Trump's trade protections which are designed to bolster domestic business and pressure U.

US oil prices have risen since tariffs were imposed on imports from Canada and Mexico, which have already affected the American fuel market. Brokers report that gasoline contracts are gaining strongly.