Oil prices retreated but remained near their highest levels since late April, supported by the U.S.-China trade truce and a new round of U.S. sanctions against Iranian oil.

WTI crude oil futures dipped lower from a two-week high after weekly oil inventories data indicated an unexpected rise in crude oil stocks. The American Petroleum Institute

Oil prices rose over 3% after the U.S. and China agreed to ease tariffs following talks in Geneva, sparking optimism in global markets. The move signals a potential rebound in crude demand amid easing trade tensions and ongoing U.

U.S. benchmark oil prices settled Tuesday at their highest in three weeks, as trade-war optimism helped “alleviate consumer-demand concerns and recession worries,” said Tyler Richey, co-editor at Sevens Report Research.

Oil dropped after OPEC+ agreed to another large output increase, raising concern that additional supply could lead to a global glut just as the trade war threatens demand.

The Canadian dollar weakened to a one-month low against its U.S. counterpart on Monday as a truce in the trade war between the United States and China triggered broad-based gains for the American currency.