"The upward move in oil comes as investors digested signs of trade relief following recent remarks by U.S. President Donald Trump, alongside stronger-than-expected Chinese trade data. According to Reuters, the rebound was further supported by a series of potential geopolitical flashpoints, from rising tensions in Ukraine to renewed risks of escalation in the Middle East, that together injected a fresh risk premium into energy markets."
"On the trade front, optimism began to return after Trump softened his tone toward China, writing on Truth Social, "Don't worry about China, it will all be fine!" The statement, coming after threats of 100% tariffs on Chinese exports and expanded export controls, was read by markets as a signal that Washington may be leaving the door open for de-escalation."
Oil prices rebounded over 2% after recent sharp losses that had pushed them to their lowest levels since May. The recovery reflected investor reaction to signs of potential trade relief following softened U.S. rhetoric toward China and stronger-than-expected Chinese export and import growth. Additional support came from geopolitical flashpoints, including rising tensions in Ukraine and renewed Middle East escalation risks, which added a risk premium. Traders noted prior plunges tied to a fragile Gaza ceasefire and trade uncertainty. Analysts view an extension of the May tariff truce as most likely, while warning of intermittent volatility.
Read at London Business News | Londonlovesbusiness.com
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