Oil prices climbed on Friday after Donald Trump said China had agreed to purchase more crude oil from the United States following talks with President Xi Jinping. The announcement added to market concerns over supply disruptions linked to the ongoing Iran war and uncertainty surrounding the Strait of Hormuz.
Oil prices jump after Donald Trump says China will buy US crude
Brent crude futures for July climbed 1.49% to $107.30 a barrel, while U.S. West Texas Intermediate crude futures for June rose 1.55% to $102.74 per barrel. The increase followed, as mentioned above, after Donald Trump‘s comments during a pre-recorded interview with Fox News after he met with Xi Jinping.
“They’ve agreed they want to buy oil from the United States, they’re going to go to Texas, we’re going to start sending Chinese ships to Texas and to Louisiana and to Alaska,” Trump said. China has not publicly confirmed any agreement related to oil purchases. Furthermore, markets reacted to signs that both Washington, D.C., and Beijing want the Strait of Hormuz to remain open. The waterway is one of the world’s most important shipping routes for crude oil, and concerns over disruptions there have pushed energy prices higher in recent weeks.
According to a White House official, Xi opposed the militarization of the Strait of Hormuz and criticized any move to charge ships for passing through it. U.S. Treasury Secretary Scott Bessent said China may help efforts to reopen the Strait behind the scenes. “It’s very much in their interest to get the strait reopened,” Bessent told CNBC.
Oil markets have remained volatile since the war with Iran escalated. Investors reportedly fear that any prolonged disruption in the region could drive up inflation and increase fuel costs globally. Brent crude prices are now about 45% higher than before the war began. The increase in oil prices has already started affecting consumers in the U.S.
Originally reported by Devanshi Basu on Mandatory.
