Oil Prices Jump After China, US Tariff Suspension

The United States and China agreed to drastically reduce their tit-for-tat tariffs for a 90-day period.

By Channels Television

Updated May 12, 2025

Oil prices rocketed more than three per cent on Monday after China and the United States agreed to suspend sweeping mutual tariffs.

Brent climbed +2.44 or 3.82% to $66.35 at 12:44 PM WAT on hopes that a pullback in tensions will support the global economy and boost demand for the commodity. West Texas Intermediate jumped 3.6 per cent to $63.24.

The United States and China agreed to drastically reduce their tit-for-tat tariffs for a 90-day period, they said in a joint statement after two days of trade talks in Geneva.

“We have reached an agreement on a 90-day pause,” US Treasury Secretary Scott Bessent told reporters after the sides issued the statement, adding that “both side will move their tariffs down” 115 percentage points.