A drone view of drilling rigs in Midland, Texas, U.S. June 11, 2025. PHOTO: REUTERS
Oil prices rose on Thursday, with markets focusing on the high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping to see if it will yield any positive result on the Iran war, which has significantly disrupted global oil supply.
Aside from trade matters, Trump is expected to encourage China to convince Tehran to make a deal with Washington to end the conflict, but analysts doubt that Xi will be willing to push its long-time strategic partner too hard.
Brent crude futures were up 26 cents, or 0.25%, to $105.89 a barrel by 0250 GMT, while US West Texas Intermediate futures rose 32 cents, or 0.32%, to $101.34.
Both benchmark oil futures contracts fell on Wednesday as investors worried about possible US interest rate hikes as higher fuel prices spur inflationary pressures. Brent crude futures fell more than $2 a barrel, while WTI futures fell more than $1.
Trump recieved a grand welcome at Beijing’s Great Hall of the People on Thursday ahead of talks with China’s Xi Jinping set to cover their fragile trade truce, the Iran war and US arms sales to Taiwan.
“Oil prices are in a wait-and-see mode,” said ING analysts in a note on Thursday, adding that the market could be pinning too much hope on the US-China talks yielding some positive results on Iran.
Read: Trump lands in Beijing for high-stakes China visit
The Strait of Hormuz, a key energy gateway, has been largely shut since the war broke out at the end of February.
While Trump has said he did not think he would need China’s help to end the war, the president is nonetheless expected to ask Xi for assistance in resolving the costly and unpopular conflict.
“Failure to make meaningful progress on reopening the strait could leave the US with few options other than renewed military action,” IG analyst Tony Sycamore said in a note.
Iran, meanwhile, appears to have tightened its control over the strait, cutting deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region.
