Oil prices jumped by about 4% on Monday after the U.S. and China said they would ease some of their tariff measures, raising hopes of an end to the trade war between the world's two largest consumers of crude oil.

Oil jumped as much as 4% before paring gains Monday after a US-China trade truce sent the overall stock market and commodities higher. West Texas Intermediate ( CL=F) futures rallied over 2% to hover near $62.50 per barrel. Brent crude ( BZ=F ), the international benchmark, also rebounded to trade above $65.

Oil prices soared following an agreement between the United States and China to slash tariffs, leading to increased optimism in global trade and the economy.