Trade deficit narrowed in April thanks to increase in oil exports
In April, exports rose 2.6% to $327.1 billion, driven by crude oil, fuel oil, and other petroleum products.
A currency counting machine with dollars
The trade deficit narrowed slightly in April, according to government data released on Tuesday, driven by energy exports amid supply shortages following the war in the Middle East.
The total trade deficit narrowed by 1.2% to $55.9 billion, according to the Commerce Department. Economists surveyed by Dow Jones Newswires and The Wall Street Journal had forecast a figure of $56.1 billion.
American exports of crude oil and petroleum products have skyrocketed since the joint U.S.-Israeli attacks on Iran in late February, which prompted Tehran to retaliate by effectively blocking the Strait of Hormuz.
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The strait is a key maritime route for energy transit, leading to a sharp rise in prices.
Exports rose by 2.6%
Meanwhile, U.S. imports rose by 2.0%, reaching $383 billion.
This was driven by imports of products such as computers and semiconductors, thanks to the steady demand for hardware needed for the development of artificial intelligence.
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