Oil prices slid on Monday morning in Asia as reports over the weekend indicated that the US prepared to impose new tariffs on $200 billion worth of Chinese exports. This was a decision that offset fears of supply constraints caused by Washington’s sanctions against Iran.

Crude Oil WTI Futures for delivery in November slipped 0.07 percent to $68.72, while Brent Oil Futures for delivery also inched down 0.01 percent to $78.08.

US President Donald Trump is prepared to impose a new round of tariffs on $200 billion worth of Chinese goods as early as today, a senior administration official said. The new tariffs may be set at 10 percent, lower than the original figure of 25 percent floated by the administration in the past.

The decision came after the end of a public comment consultation on the new round of tariffs earlier this month. Trump warned that he would put tariffs on practically all Chinese products and dampened expectations about the impact of trade talks with Beijing.