Oil prices slide amid renewed US-China trade tensions

Brent crude oil futures dropped nearly 2% to $62.10 per barrel on Tuesday, reversing early gains as escalating US-China trade tensions reignited concerns about global energy demand.

Beijing retaliated against Washington by sanctioning five American subsidiaries of South Korean shipbuilder Hanwha Ocean, deepening a long-standing dispute between the world’s two largest economies.

At the same time, easing tensions in the Middle East weighed on risk premiums after Hamas released Israeli hostages and Israel freed Palestinian prisoners. Oil prices also faced downward pressure from persistent fears of oversupply, with production continuing to rise among both OPEC+ and non-OPEC producers.

Meanwhile, former President Donald Trump said he is considering supplying Ukraine with long-range Tomahawk missiles, heightening concerns about potential disruptions to Russian crude exports.

WTI crude oil futures also slipped nearly 2%, settling at $58.30 per barrel.