Oil Prices Drop as US-China Tariff Agreement Eases Trade Tensions

Oil prices dropped in the international market following a breakthrough agreement between the United States and China to ease tensions over tariffs, signaling a pause in their ongoing economic conflict.

Brent crude futures slipped by 22 cents, or 0.3%, to $64.74 per barrel as of 0248 GMT. Similarly, US West Texas Intermediate (WTI) crude dropped 18 cents, or 0.3%, to $61.77 per barrel.

Despite Tuesday’s slight drop, both oil benchmarks had ended Monday about 1.5% higher — their strongest closing levels since April 28 — reflecting recent volatility in global oil markets.

In contrast, gold prices remained near a one-week low reached in the previous session, as improved investor sentiment reduced the demand for safe-haven assets. Spot gold was stable at $3,230.99 an ounce as of 0309 GMT, after falling 2.7% in the previous session.

Global stock markets also rallied on Tuesday after the US and China agreed to scale back major tariffs for at least 90 days, temporarily halting the trade war between the world’s two largest economies and easing fears of a global economic slowdown.

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