Oil prices climb 4% as U.S., China ease tariffs

Oil prices rise about 4% on Monday after the United States and China agree to ease some of their tariff measures, raising hopes that the trade war between the world’s two largest oil consumers might end.

Brent crude increases by $2.43, or 3.8%, to $66.34 a barrel, and U.S. West Texas Intermediate crude rises by $2.51, or 4.1%, to $63.53.

The two countries announce a 90-day pause on tariffs following weekend talks in Geneva, with both agreeing to cut tariffs by more than 100 percentage points to a baseline rate of 10%. The easing of tensions improves the outlook for oil demand, which had been under pressure as the trade war pushed oil prices to a four-year low earlier in April.

The Geneva meeting marks the first direct talks between senior economic officials from both countries since U.S. President Donald Trump returned to office and reintroduced tariffs. A trade deal between the U.S. and Britain last week also helped boost oil prices, adding to investor optimism that further economic disruptions may be avoided.

Meanwhile, talks between U.S. and Iranian negotiators end in Oman on Sunday with plans to continue discussions. Iran says it will maintain its uranium enrichment program, but any future agreement could reduce concerns about global oil supply and may weigh on prices.