Market Reacts to Escalating Trade War

Crude oil prices took a significant hit on Thursday, with West Texas Intermediate (WTI) experiencing a sharp decline of over 3%. This downturn came as China's retaliatory tariffs on U.S. imports officially took effect, casting a shadow over future demand prospects.

Trade War Escalation

The situation worsened as Chinese officials criticized the U.S. for utilizing tariffs "as a weapon", a response to President Donald Trump's decision to increase tariffs on Chinese goods to a staggering 125%.

Price Movements

By 7:46 am ET, WTI for May deliveries had plummeted by 3.24%, trading at $60.33 per barrel. Shortly after, Brent crude for June settlements followed suit, dropping by 2.99% to $63.53 per barrel.