06:05 AM EDT, 05/12/2025 (MT Newswires) -- Crude prices jumped Monday, as market sentiment improved, following the US China agreed to ease trade tariffs, raising hopes for a resolution to the trade dispute.

According to MarketWatch, front-month West Texas Intermediate crude was up 2.2% at $62.36 a barrel, and global benchmark Brent crude gained about 2% to $65.17/bbl during pre-market hours on Monday.

The meeting took place between both countries in Geneva on Sunday. "We have reached an agreement on a 90-day pause and substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115%," said US Treasury Secretary Scott Bessent said Monday.

The move will potentially defuse a trade war that had destabilized financial markets and sparked global recession fears.

Fears of OPEC+ hiking output has capped further gains as the group is supposed to accelerate production in May and June, injecting more crude supply into an already oversaturated market.