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Photographer: Andrey Rudakov/Bloomberg
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Oil Rises as Middle East Tension Drowns Out Trump Trade Threats

Updated on
  • Prices recover from lows as U.S. deploys ships to Middle East
  • U.S.-China trade deal worries weigh on demand outlook

Oil recovered from early declines after U.S. President Donald Trump threatened to escalate his trade war with China but also dispatched warships to the Middle East in a warning to Iran.

Futures in New York climbed 0.5 percent as Trump’s national security adviser announced an aircraft carrier strike group and bomber force were on their way to the Middle East. That erased a steep plunge earlier in the session after the president’s tweets suggested U.S.-China trade talks were in jeopardy, stoking fears about the global economy.