Global oil prices plummeted on Thursday.
After skyrocketing more than 4% the previous day, crude oil prices took a nosedive following a White House clarification that U.S. President Donald Trump’s proposed tariffs on Chinese goods would actually be 145%, not the initially reported 125%.
The White House explained that due to China’s inadequate control of fentanyl, Trump intended to add to the previously imposed 20% tariff, bringing the total to 145% rather than 125%.
Earlier, Trump had posted on his social media platform, Truth Social, claiming that China had retaliated against the U.S., leading him to announce a 125% tariff.
The prospect of a full-scale trade war between the world’s two largest economies caused a steep decline in oil prices.
Brent crude, the global benchmark, settled at $63.33 per barrel, tumbling $2.15 (3.28%) from the previous session.
West Texas Intermediate (WTI), the U.S. benchmark, plunged to $60.07 per barrel, dropping $2.28 (3.66%) and barely clinging to the $60 mark.
