Santos Limited (STO.AU) saw its stock price plummet by 5.04% during intraday trading, as the Australian energy sector faced significant headwinds. The sharp decline comes as oil prices hit their lowest levels in around four years, exacerbated by escalating trade tensions between the United States and China.

The broader Australian energy stocks index (.AXEJ) fell 3.3%, with major players like Santos and Woodside Energy (WDS.AX) 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 world's two largest economies.

The plunge in Santos Limited's stock price is part of a larger market trend, with the S&P/ASX 200 index (.AXJO) falling 1.6% as investors digest the news of impending 104% U.S. tariffs on Chinese imports. This development has raised concerns about slowing global growth and higher inflation, particularly affecting Australia's export-oriented economy. As China is Australia's single biggest export market, the ongoing trade tensions pose significant risks to companies like Santos Limited, which are sensitive to global economic conditions and commodity prices.