04:57 AM EDT, 10/14/2025 (MT Newswires) -- Crude oil prices dropped on Tuesday, erasing earlier gains, as the market assesses trade tensions between the U.S. and China and the Middle East peace process.

Brent crude at last look fell 2.2% to US$61.95/barrel and West Texas Intermediate crude lost 2.2% to US$58.23/b. Both contracts were near a five-month low, Reuters said in a Tuesday report.

Beijing's expanded export controls on rare earths and U.S. threats of 100% tariffs and software export curbs starting November have weighed on sentiment, the report said. Beijing also announced sanctions against five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, while the U.S. and China will start charging additional port fees on ocean shipping firms.

The International Energy Agency raised its forecast for global oil supply growth this year after the Organization of the Petroleum Exporting Countries and allied producers announced its most recent output hike, while lowering its demand growth forecast due to a challenging economic backdrop.