In Tokyo, oil prices dropped over 3% on Monday, continuing a decline from the previous week. The decrease is attributed to concerns about the global economy slowing down due to a potential trade war and reduced oil demand after China retaliated against U.S. President Donald Trump's tariffs.

Brent futures fell by $2.1 to $63.48 a barrel, a decrease of 3.2%, while U.S. West Texas Intermediate crude futures decreased by $2.14 to $59.85, a 3.5% decline.

Last Friday, both benchmarks experienced a 7% plunge, reaching their lowest levels in more than three years. This drop follows China's decision to increase tariffs on U.S. goods, intensifying fears of a trade war and raising concerns among investors about a higher risk of recession.

In response to the U.S. tariffs, China announced additional tariffs of 34% on American goods, further reinforcing worries about an ongoing global trade war and the possibility of a recession affecting the global economy.

JPMorgan, an investment bank, raised its estimate of a global economic recession by the end of the year to 60%, up from its previous estimate of 40%.

Yuka Obayashi reported the news from Tokyo, with editing by Nick Zieminski.