Oil rises more than 4%, Brent nears $70

Oil drilling rigs

Oil prices soared today, June 12, driven by investor optimism that the United States and China would reach an agreement to end the trade war between the world's two largest economies.

Brent crude futures for August delivery rose 4.34%, or $2.90, to settle at $69.77 a barrel. WTI crude futures for July delivery jumped 4.88%, or $3.17, to $68.15 a barrel.

US President Donald Trump said in remarks today that two days of negotiations with China in London resulted in an agreement between the two countries to determine final levels of mutual tariffs, with Beijing lifting restrictions on rare earth exports in exchange for Washington allowing Chinese students to attend its universities.

Oil received additional support from other economic and geopolitical developments, as Iran threatened to bomb US military bases if nuclear negotiations fail. Further, reports revealed that Washington is preparing to partially evacuate its embassies in Iraq due to "security risks in the region."

For his part, Trump said in a press interview published today that his confidence in the possibility of Iran agreeing to completely halt uranium enrichment has diminished.

Separately, the likelihood of the Federal Reserve cutting interest rates at its September meeting has increased after official data showed annual inflation in the US rose to 2.4% in May from 2.3% in April, below expectations of an acceleration to 2.5%.