Oil prices climbed after President Donald Trump’s administration indicated a willingness to reach an agreement with China to ease renewed trade tensions between the world’s two largest oil consumers.

Iraq announced on Thursday that it had reached an agreement with the Kurdish Regional Government (KRG) to settle a prolonged dispute over crude oil exports from the northern region.

Oil rose after Donald Trump flagged a Thursday announcement on a trade deal, which is expected to be with the UK, as the US president faces political pressure following tariffs that rattled global markets.

Iraq and British oil giant BP are set to sign a major deal for four Kirkuk oil and gas fields by the first week of February, according to Oil Minister Hayan Abdel-Ghani, who spoke to Reuters during a visit to Britain, News.az reports citing Reuters.