Oil Prices Hit Hard as US-China Trade War Intensifies

Oil futures experienced a significant drop on Thursday, with prices falling more than 5% as the trade dispute between the United States and China, the world's largest oil consumer, continues to escalate. Investors are growing increasingly cautious, leading to a sharp decline in trading activity.

China's Retaliatory Tariffs Spark Demand Concerns

Adding to the market's woes, China's implementation of an 84% reciprocal tariff on American goods has raised alarms about potential reductions in oil demand. Chinese officials have criticized the US for using tariffs "as a weapon," a response to the US decision to increase levies on Chinese products to 125%, following a previous hike to 104%.

Market Reaction: WTI and Brent Prices Plunge

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