Market News

(Bloomberg) -- Oil rose as the market weighed the outlook for easing trade tensions after President Donald Trump said he would extend the deadline for higher tariffs on the European Union.

Brent traded above $65 a barrel, rising along with equity markets. Trump delayed a decision until July 9 after a phone call with European Commission President Ursula von der Leyen to reach a trade deal. On Friday, he had threatened a 50% levy on the bloc starting June 1.

Oil has been under pressure since mid-January as the fallout from Trump’s sweeping tariffs and retaliatory measures weigh on the outlook for demand. Plans by OPEC+ to boost idled production have added to bearish headwinds, with the group set to meet on Sunday to decide on supply policy for July. Prices recovered some ground this month following a truce in the US-China trade war.

“Commodity markets have responded as expected to Trump delaying tariffs on the EU, with crude oil staging a small comeback,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “The OPEC+ meeting is clearly also a focus given the risk of another bumper production increase.”

Trump, meanwhile, expressed optimism about talks with Iranian officials as he seeks to put limits on the Islamic Republic’s nuclear program. The US and Iran held discussions last week in Rome that the Iranian foreign minister and lead negotiator, Abbas Araghchi, said could lead to an agreement.