Oil prices surged on Wednesday after tumbling to four-year lows earlier in the day.
The turnaround followed U.S. President Donald Trump’s announcement of steeper tariffs on China while pausing hikes for other nations.
Trump raised the tariff rate for Chinese imports to 125%, effective immediately, while implementing a 90-day delay for most other countries. A 104% tariff had already taken effect early Wednesday.
By late afternoon, Brent crude rose $1.82, or 2.9%, to $64.64 a barrel. U.S. West Texas Intermediate gained $1.92, or 3.2%, reaching $61.50.
“We’ve reached a turning point in the trade conflict with Trump giving the countries that have shown desire to work on a deal to get rid of tariffs some time to work it out,” said Phil Flynn of Price Futures Group.
“What Trump is doing is putting China out on an economic island all by themselves,” Flynn added.
China retaliated with 84% tariffs on U.S. goods, escalating the trade war.
“This diminishes the chances of a quick deal,” said Ye Lin of Rystad Energy.
Oil prices remain pressured by global recession fears, rising inventories, and OPEC+ output increases.
A leak in North Dakota also forced a major U.S.-Canada pipeline shutdown.
