NEW YORK: Oil prices climbed about two per cent to a two-week high on Monday after the US and China agreed to temporarily slash tariffs, raising hopes of an end to the trade war between the world’s two biggest economies.

Brent crude futures rose $1.35, or 2.1pc, to $65.26 a barrel by 11:39am EDT (1539 GMT), while US West Texas Intermediate (WTI) crude gained $1.40, or 2.3pc, to $62.42.

The US and China reached a better-than-expected deal to temporarily slash tariffs, sending Wall Street stocks, the US dollar and crude prices sharply higher, as the world’s two biggest oil consumers seek to end a damaging trade war that has stoked fears of recession.

“This was a larger-than-expected de-escalation and represents an upgrade to the outlook, though the negotiation process will likely remain challenging,” analysts at bank ING said in a note.

Oil prices fell to a four-year low in April due primarily to worries about what the US-China trade war would do to global economic growth and oil demand, while at the same time the Organisation of the Petroleum Exporting Countries (Opec) decided to boost oil output by more than previously expected.

Published in Dawn, May 13th, 2025