Oil prices rose on Tuesday after the United States and China agreed to extend a pause on higher tariffs, calming fears that an escalation in their trade war could hurt economic growth and dampen fuel demand in the world’s two largest oil-consuming nations.
Brent crude futures gained 26 cents (0.39%) to $66.89 a barrel, while U.S. West Texas Intermediate (WTI) rose 22 cents (0.34%) to $64.18 by 0015 GMT.
U.S. President Donald Trump extended the tariff truce with China by 90 days, delaying triple-digit duties on Chinese goods and raising hopes for a trade agreement. The move also eased concerns over a potential slowdown that could weigh on global oil prices.
Markets are now turning attention to the upcoming August 15 meeting between Trump and Russian President Vladimir Putin in Alaska, aimed at negotiating an end to the war in Ukraine. Any peace deal could remove the lingering risk of disruption to Russian oil supplies.
Washington has been pressuring China and India to curb purchases of Russian oil, threatening secondary sanctions. However, the likelihood of such measures has decreased ahead of the meeting.
Investors are also watching U.S. inflation data due later today, which could influence the Federal Reserve’s interest rate outlook. A signal of potential rate cuts would further support crude prices.
