Sharp Decline in Oil Prices

Crude oil prices experienced a significant downturn on Thursday, with West Texas Intermediate (WTI) plummeting over 3%. This decline reflects growing investor concerns over the escalating trade tensions between the US and China.

Impact of Retaliatory Tariffs

The immediate cause of the drop was the implementation of Chinese retaliatory tariffs on US imports, which has raised fears of weaker demand. Chinese officials have criticized the US for using tariffs "as a weapon," a response to President Donald Trump's decision to increase duties on Chinese products to 125%.

Market Reactions

By 7:46 am ET, WTI for May deliveries had fallen by 3.24% to $60.33 per barrel. Shortly after, Brent for June settlements saw a 2.99% decrease, trading at $63.53 per barrel.