Shares of Exxon Mobil (XOM) plunged 5.01% in Thursday trading, as President Donald Trump's sweeping new tariffs sparked fears of a global trade war and recession, while oil prices tumbled on both trade concerns and increased OPEC+ output.

Trump's announcement of a 10% tariff on most U.S. imports, along with higher levies on specific countries, sent shockwaves through global markets. While oil and gas imports were exempted from the new tariffs, investors worried that the broader economic impact would hurt energy demand. Brent crude futures fell over 6% to around $70 per barrel, while U.S. West Texas Intermediate crude dropped by a similar margin to under $67.

Adding to the pressure on oil prices, eight OPEC+ countries unexpectedly agreed to advance their plan to increase oil production, boosting output by 411,000 barrels per day in May. This decision exacerbated concerns about potential oversupply in the oil market.

The energy sector as a whole was hit hard, with the NYSE Energy Sector Index falling 5.4% and the Energy Select Sector SPDR Fund (XLE) dropping 6.8%. Exxon's decline was in line with peers, as Chevron fell 3.8% and Occidental Petroleum dropped 5%.

The broader market also saw significant losses, with the S&P 500 down over 4% and the Nasdaq falling more than 5% as investors fled to safer assets. Analysts noted that the market reaction reflects deep uncertainty about the economic impact of Trump's tariff policy and potential retaliation from trading partners.