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(Bloomberg) -- Oil powered higher with most other commodities, while gold fell, after China and the US agreed to lower tariffs following a weekend of trade talks.

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Brent crude added as much as 3.9% in London and copper rose 1.4%. European natural gas extended gains, while soybeans and iron ore also rallied. Shares of the top mining companies surged.

The truce between the world’s two largest economies brings relief to commodity markets roiled by prohibitive tariffs that dented the outlook for global growth in recent weeks. Oil watchers have slashed demand forecasts, and there are signs the trade war is already hitting the amount of goods arriving in the US.

China will reduce tariffs on US goods to 10% from 125%, while America will cut its own curbs to 30% from 145% in an arrangement lasting for 90 days.

At a briefing after the talks, US Treasury Secretary Scott Bessent said neither nation wanted their economies to decouple. Both countries said they would establish a mechanism to continue discussions on economic and trade relations.

The announcement came after a weekend of talks in Geneva involving Bessent, US Trade Representative Jamieson Greer and a Chinese delegation led by Vice Premier He Lifeng.

The lower levies are “reducing fears of a prolonged economic fallout hurting demand,” said Ole Hansen, head of commodities strategy at Saxo Bank. “The key question is whether today’s news marks peak optimism, given the low likelihood of a full US retreat from its stance on China.”

Commodities have been volatile ever since Trump first announced reciprocal tariffs in early April. Oil prices are still down more than 10% since then as the market contends with rising supplies from the Organization of the Petroleum Exporting Countries and its allies.

Companies Rally

Top miners including Glencore Plc and Rio Tinto Plc rose more than 5% in London trading on Monday and were among the best performers in Europe’s equity markets. Energy companies also climbed.

Copper prices, which fell sharply after tariffs were first announced, have rebounded on signs that demand is holding firm in China for now.

In agricultural markets, soybean futures in Chicago extended gains to trade at the highest since late February. China is the world’s top soybean buyer, and the thaw could help get crop flows moving again. Cotton futures jumped as much as 3.4%.