Santos Limited (STO.AU) saw its stock price plummet by 5.04% during Wednesday's trading session, as the Australian energy sector faced significant pressure from plummeting oil prices and escalating US-China trade tensions. The sharp decline comes as oil prices hit their lowest levels in approximately four years, sending shockwaves through the energy industry.

The Australian energy stocks sub-index fell 3.3%, with major players like Santos and Woodside Energy experiencing notable declines. Oil prices settled down more than $1 a barrel on Tuesday, reaching a four-year low as investors priced in an increasing likelihood of a recession due to the intensifying trade war between the United States and China, the world's two largest economies.

The broader Australian market also felt the impact of the trade tensions, with the S&P/ASX 200 index falling 1.6% in early trading. The impending implementation of 104% tariffs on Chinese imports by the United States has raised concerns about slowing global growth and higher inflation, further exacerbating the pressure on energy stocks like Santos. As markets digest these developments, investors are closely watching for potential policy responses, including the possibility of interest rate cuts by the Reserve Bank of Australia in the near future.