Oil prices soared more than 3% in Asian trading on Monday, hitting fresh intraday highs after the United States and China announced a 90-day tariff rollback to ease trade tensions.

The agreement, outlined in a joint statement from Geneva, has revived hopes of a broader trade breakthrough, fueling optimism for increased energy demand and industrial activity.

Brent crude peaked at $66.30 per barrel, while U.S. West Texas Intermediate reached $63.41.

By mid-session, Brent was up 2.5% at $64.14 per barrel, and WTI climbed 2.7% to $63.14.

The rally follows a week where both benchmarks gained over 4%, their first weekly rise since mid-April.

Under the temporary deal, effective May 14, the U.S. will reduce its 145% duties on most Chinese imports to 30%, including tariffs tied to fentanyl.

In response, China will cut its 125% tariffs on U.S. goods to 10%. The de-escalation is seen as a critical step toward stabilizing trade flows between the world’s two largest economies, which have been strained by years of tit-for-tat levies.

The trade truce sent ripples through global markets. Indian equities surged, with the Nifty Metal index jumping up to 5% and all 15 constituents in positive territory.

The Nifty IT index soared 5.4%, driven by gains of up to 8% in stocks like Infosys, HCLTech, Persistent Systems, Mphasis, Tech Mahindra, and Wipro.

Analysts attribute the bullish sentiment to expectations of stronger global trade and energy consumption