Oil prices edged up on Friday following a sharp drop in the previous session, heading for a weekly gain of more than 1% as U.S.-China trade optimism outweighed the prospects of Iranian supply returning to the market.

Oil prices inched higher on Friday, rebounding from a steep drop in the previous session, as optimism over U.S.-China trade relations outweighed concerns about the potential return of Iranian oil supply.

The future of the U.S.-China tariff war is unclear, but in the next three months, some stocks may benefit more than others.

On its own, the deal struck Monday between the U.S. and China to de-escalate the trade war is undeniably a positive development. As part of the deal, the U.S. will temporarily lower tariffs on Chinese imports from 145 percent to 30 percent (which will be applied on top of other tariffs imposed by the first Trump administration).

The curtain came down on the first phase of President Trump’s tariff and trade war earlier this week, when the U.S. announced a huge reduction in levies with China. Washington and Beijing agreed to take 115 percentage points off the tariffs they had imposed upon each other’s exports at the apex of the brief