Oil prices rose on Monday as renewed tensions between the US and China fueled worries over global growth and supply chains, after Beijing said it was "not afraid of" a trade war in response to President Donald Trump's latest tariff threats.
Brent crude was trading at $63.41 per barrel at 09.34 a.m. local time (0634 GMT), up 2.1% from the previous close of $62.08.
US benchmark West Texas Intermediate (WTI) increased by 2.3% to $59.41 from $58.07 in the prior session.
The rebound came after Trump on Friday threatened to impose 100% tariffs on Chinese goods and restrict exports of "critical software" starting Nov. 1, following Beijing's move to tighten controls on rare earth exports.
China expanded those restrictions on Thursday, adding limits on processing and manufacturing technologies and banning cooperation with foreign firms without government approval.
China said Sunday it is "not afraid of" a trade war after Trump's threats. China's position on a trade war is consistent, a Commerce Ministry spokesperson said, namely: "We do not want it, but we are not afraid of it."
Despite the sharp rhetoric, Trump struck a more optimistic tone later, saying on his social media platform Truth Social: "Don’t worry about China, it will all be fine."
Trump characterized Chinese President Xi Jinping's rare earth export controls as a temporary misstep. "Highly respected President Xi just had a bad moment. He doesn't want depression for his country, and neither do I," he said.
The escalating dispute between the world's two largest oil consumers rattled markets on Friday, sending US stocks sharply lower.
According to analysts, oil prices also drew some strength from easing Middle East tensions and hopes that Presidents Trump and Xi could meet on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea later this month.
Trump said Sunday that the war in Gaza had ended as he departed for the Middle East to attend a peace summit on the newly agreed cease-fire.
The Al-Qassam Brigades announced Monday that they will release 20 Israeli hostages alive very shortly.
The armed wing of the Palestinian resistance group Hamas announced that it had decided to release 20 Israeli prisoners alive as part of a Gaza ceasefire and prisoner exchange agreement.
The truce between Israel and Hamas eased fears of supply disruptions in the oil-rich Middle East.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr