HOUSTON- Oil prices plunged 7 percent on Friday to settle at their lowest in over three years as China ramped up tariffs on US goods, escalating a trade war that has led investors to price in a higher probability of recession.
China, the world’s top oil importer, announced it will impose additional tariffs of 34 percent on all US goods from April 10. Nations around the world have readied retaliation after Trump raised tariff to their highest in more than a century.
Commodities including natural gas, soybeans and gold also dived, while global stock markets tumbled. Investment bank JPMorgan said it now sees a 60 percent chance of a global economic recession by year-end, up from 40 percent previously.
Global benchmark Brent futures settled $4.56, or 6.5 percent, lower at $65.58 a barrel, while US West Texas Intermediate crude futures lost $4.96, or 7.4 percent, to end at $61.99.
At the session low, Brent fell to $64.03 and WTI hit $60.45, their lowest in four years.
