Oil Prices Stabilize Ahead of High-Profile Meeting Between Trump and Xi in Beijing

US-China Meeting Looms as Oil Prices Edge Up

Oil prices inched up on Thursday as investors awaited a crucial meeting between US President Donald Trump and Chinese President Xi Jinping. The meeting, scheduled to take place later in the day, comes as traders remain focused on the escalating tensions in the Middle East, particularly the Iran war.

Market Update

Brent crude futures rose 13 cents, or 0.12%, to $105.76 a barrel by 0015 GMT. Meanwhile, U.S. West Texas Intermediate futures increased by 12 cents, or 0.12%, to $101.14. These gains follow a decline in both benchmark oil futures contracts on Wednesday, where Brent crude futures fell more than $2 a barrel and WTI futures dropped more than $1.

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US-China Relations and the Iran War

Trump's meeting with Xi is expected to center on securing economic wins, maintaining a fragile trade truce, and navigating contentious issues such as the Iran war and arms sales to Taiwan. Despite Trump's assertion that he does not require China's assistance to end the war with Iran, analysts believe he will likely ask Xi for help in resolving the costly and unpopular conflict.

However, it appears unlikely that Trump will receive the support he seeks. The situation in the Middle East remains precarious, with Iran tightening its control over the Strait of Hormuz. The country has cut deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region, further exacerbating tensions.

China's Role in the Iran Oil Trade

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China is the largest buyer of Iranian oil, with over 80% of Iran's shipped oil destined for the country in 2025. Chinese independent refiners have taken advantage of discounted US-sanctioned oil, solidifying China's position as a major player in the Iran oil trade.

This significant reliance on Iranian oil highlights the complex dynamics at play in the US-China-Iran relationship. As tensions in the Middle East continue to escalate, the outcome of Trump's meeting with Xi will have far-reaching implications for the global oil market.