Oil Futures Hit Hard by Trade War Escalation

Investors' caution surged as oil futures prices experienced a significant drop on Thursday. The ongoing trade dispute between U.S. President Donald Trump and China, the world's largest oil consumer, continues to cast a long shadow over the market.

China's Retaliatory Tariffs Spark Demand Worries

Adding to the market's unease, China's implementation of an 84% reciprocal tariff on American goods has raised concerns about a potential decrease in demand. Chinese officials have criticized the U.S. for using tariffs "as a weapon", a move that followed President Trump's decision to increase levies on Chinese products to 125%.

Market Reaction: WTI and Brent Crude Prices Fall

By 10:08 am ET, West Texas Intermediate (WTI) for May deliveries had plunged by 5.57% to $58.81 per barrel. Similarly, Brent for June's settlements saw a 5.24% drop, trading at $62.12 per barrel.