New York: Oil prices fell more than 3% on Monday, extending last week’s losses, as escalating trade tensions between the United States and China fueled fears of an economic recession that could reduce demand for crude. Brent crude futures fell $2.28, or 3.5%, to $63.30 a barrel by dawn on Monday. West Texas Intermediate (WTI) crude futures fell $2.20, or 3.6%, to $59.79.

According to National Iraqi News Agency, oil prices fell 7% on Friday as China raised tariffs on US goods, escalating a trade war that has prompted investors to raise expectations of a recession. Over the past week, Brent fell 10.9%, while WTI fell 10.6%.

In response to Trump’s tariffs, China announced on Friday that it would impose an additional 34% tariff on US goods, confirming investor fears of a full-blown global trade war and the potential risk of a global recession. While imports of oil, gas, and refined products were exempt from Trump’s new sweeping tariffs, these policies could exacerbate inflation, slow economic growth, and exacerbate trade disputes, casting a shadow over oil prices.