Oil prices tumbled on Friday, plunging roughly 7% to settle at their lowest levels in over three years, as China’s announcement of steep new tariffs on U.S. goods escalated global trade tensions and stoked recession fears. Brent crude dropped $4.56, or 6.5%, to close at $65.58 a barrel, while U.S. West Texas Intermediate (WTI) slid $4.96, or 7.4%, to finish at $61.99.
During the session, Brent touched $64.03 and WTI bottomed at $60.45, marking four-year lows. The losses capped Brent’s worst weekly performance in 18 months and WTI’s largest in two years.
China’s new 34% tariffs on U.S. imports, set to begin April 10, came on the heels of President Trump’s aggressive tariff increases, which have prompted global retaliation and fears of stagflation.
Adding to the pressure, OPEC+ advanced its planned output hike to 411,000 barrels per day for May, up from 135,000 bpd.
While oil imports were excluded from Trump’s tariffs, analysts warned that broader economic impacts—such as rising inflation and falling demand—could continue to weigh on prices. Goldman Sachs slashed its December 2025 price targets by $5, putting Brent at $66 and WTI at $62, citing rising recession risk. HSBC also lowered its 2025 global oil demand growth forecast to 0.9 million bpd from 1 million.