Oil prices and along with US markets plunged on Friday as tensions between the US and China escalated into a full-blown trade war after the latter announced a sweeping 34% retaliatory tariffs of on all American goods. China’s move triggered panic across markets which was already in shock from President Donald Trump’s new round of tariffs earlier this week.Brent crude futures nosedived $4.56, or 6.5%, to settle at $65.58 a barrel, while US West Texas Intermediate (WTI) crude fell $4.63, or 6.92%, to $62.32 - both hitting their lowest levels. Although oil, gas, and refined products were exempted from new US tariffs, experts believe that the broader economic consequences like higher inflation, slower growth, and deepening global tensions are getting heavy on oil prices.The Dow Jones Industrial Average plummeted 2,231 points, or 5.5%, to 38,314.86, its biggest single-day loss since June 2020. Combined with Thursday’s 1,679-point drop, the index has experienced back-to-back blow of over 1,500 points each day.The S&P 500 slid 5.97% to 5,074.08, deepening a two-day loss of nearly 11%, while the tech-heavy Nasdaq Composite dropped 5.8% to 15,587.79 pushing it more than 22% off its December high and firmly into bear market territory.Amid ongoing market turmoil, President Trump appeared unfazed, tweeting from his Mar-a-Lago resort in Florida, declaring, "THIS IS A GREAT TIME TO GET RICH," before heading to a nearby golf course.While he recognised that tariffs might inflict some short-term difficulties on Americans, Trump remained confident that the long-term advantages, such as the return of manufacturing jobs to the US would outweigh the temporary challenges. He compared the situation to a medical procedure, with the US economy as the patient undergoing treatment.Read Full Story: US Market Bloodbath Worsens as China Strikes Back with 34% Tariffs on American Goods