Oil prices soared on Monday following a breakthrough in trade negotiations between the United States and China, with both countries agreeing to suspend major tariffs for 90 days a move that raised hopes for global economic stability and stronger energy demand.
Brent crude jumped $2.44, or 3.82%, to $66.35 per barrel as of 12:44 PM WAT, while West Texas Intermediate (WTI) rose 3.6% to $63.24.
The price rally came after a joint statement was released at the close of two days of trade talks in Geneva, where both sides agreed to drastically scale back their tit-for-tat tariffs in a bid to ease tensions and reboot trade flows.
“We have reached an agreement on a 90-day pause,” US Treasury Secretary Scott Bessent said. “Both sides will move their tariffs down by 115 percentage points.”
The announcement immediately boosted market sentiment, as investors interpreted the move as a sign of reduced geopolitical risk and a potential rebound in global trade factors that typically lift oil consumption.
Analysts expect that if the détente holds, it could drive renewed demand across manufacturing and shipping sectors, which had been hit hard by the prolonged trade war.
