International oil prices plunge over 3% in one day… Gold price hits all-time high

Falling international oil prices (Source: Unsplash)

After U.S. President Donald Trump announced a 90-day mutual tariff deferral, international oil prices, which had rebounded, plummeted again within a day. This is a result of renewed concerns over the U.S.-China trade conflict weighing on investor sentiment. On the other hand, in a market atmosphere where uncertainty has increased, the international gold price reached an all-time high, supported by investors' preference for safe assets.

On the 10th (local time) at the New York Mercantile Exchange, West Texas Intermediate (WTI) for May delivery closed at $60.07 per barrel, down $2.28 (3.66%) from the previous trading day. June Brent oil also fell $2.15 (3.28%) to record $63.33.

The drop in oil prices accelerated following a White House announcement that the Trump administration had imposed a total tariff of 145%, higher than the previously known 125%, on Chinese imports. This included an additional 20% tariff imposed under the pretext of responding to synthetic drug fentanyl. The higher-than-expected tariff rate has raised investor concerns about economic slowdown and a decrease in oil demand.

Henry Hoffman, co-portfolio manager at Catalyst Energy Infrastructure Fund, expressed concern, “If the trade war prolongs, the global economy could take a significant hit.”

As tensions between the U.S. and China rise again, increasing volatility throughout the global asset market, oil is under downward pressure while gold is strengthening as a refuge for investors amidst unstable geopolitical conditions.