Oil prices increased on Tuesday after the US and China paused more tariffs, alleviating concerns that their trade battle might damage their economies and reduce fuel consumption in the world’s two major oil consumers. By 0015 GMT, Brent crude prices jumped 26 cents, or 0.39%, to $66.89 a barrel and U.S. West Texas Intermediate crude futures up 22 cents, or 0.34%, to $64.18.

On Monday, a White House official said President Donald Trump extended a tariff truce with China by 90 days, preventing triple-digit tariffs on Chinese goods as U.S. retailers prepared for the holiday season. This fueled hopes that the world’s two largest economies may reach a deal to avoid a virtual trade embargo. Tariffs might hamper economic development, lowering global fuel consumption and oil prices.

Investors are also watching the August 15 summit between Trump and Putin in Alaska to conclude the Ukraine crisis. The summit is set amid increased U.S. pressure on Russia, with more sanctions on Russian oil importers including China and India if no peace settlement disrupts oil trade flows. “Any peace deal between Russia and Ukraine would end the risk of disruption to Russian oil that has been hovering over the market,” noted ANZ senior commodity strategist Daniel Hynes.

Trump gave Russia until Friday to resolve the Ukraine conflict or face additional measures, and he urged India to cut Russian oil purchases. Washington has been pressuring Beijing to cease buying Russian oil, with Trump threatening secondary tariffs. Before the August 15 Trump-Putin meeting, those measures are less likely. Later today, U.S. inflation data may reveal the Federal Reserve’s interest rate path. Any indication the central bank may decrease rates soon will boost crude prices.