Oil settled at two-week highs amid US–China tariff truce

International crude oil benchmarks closed higher on Monday, 12 May, as markets responded positively to a temporary easing of trade tensions between the United States and China. Prices gained approximately 1.5% following an agreement between the world’s two largest economies to scale back tariffs, fuelling cautious optimism over a potential resolution to the protracted trade war.

Brent crude futures rose $1.05, or 1.6%, to settle at $64.96 a barrel.

WIT gained 93 cents, or 1.5%, to settle at $61.95.

As part of the 90-day truce, China will reduce tariffs on US goods from 125% to 10%, while the United States will lower its own duties from 145% to 30%. The temporary agreement brought a measure of relief to global commodity markets, which have been unsettled in recent weeks by escalating tariffs and the resulting concerns over a slowdown in global economic growth.