Oil prices increased on indications of easing trade tensions between the US and China after fresh tariffs by both the countries ruffled the market.

Brent crude LCOc1 jumped 26 cents to $58.96 a barrel, while US West Texas Intermediate (WTI) crude futures CLc1 gained 23 cents to settle at $53.87 per barrel, Reuters reported.

US President Donald Trump said that a trade deal with the Asian giant is possible. On the other hand, Chinese Vice Premier Liu He said that his country intends to resolve the current impasse through ‘calm’ negotiations, preventing escalating trade tensions any further. The lessening of the ongoing rhetoric from both the sides increased optimism of a potential trade deal between the two largest economies.

Earlier, China’s Commerce Ministry announced fresh tariffs of additional 5% or 10% on 5,078 products sourced from the US. The list included crude oil, agricultural products and small aircraft. In response, President Trump told the US companies to shut down their operations in China, and increase local manufacturing.

McKenna Macro strategist Greg McKenna was quoted by Reuters as saying: “Unless you believe a trade deal will happen the slowdown in the global economy continues … and earnings all over the globe will be under pressure.”

Meanwhile, French President Emmanuel Macron said that the US President Donald Trump and Iranian President Hassan Rouhani may meet in the coming weeks to mitigate ongoing tensions between Tehran and Washington.

The move added pressure on the oil prices in the previous sessions, as a potential deal may increase crude supplies to the market. Currently, the US has stepped up efforts to bring down Iranian crude exports to zero.