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.