Oil prices recovered losses after US-China leaders discussed economic cooperation and Strait of Hormuz security, reducing supply risks.
West Texas Intermediate crude oil erased earlier losses to trade at $97.30, up 0.34%, following volatile sessions tied to US-China diplomatic talks. The benchmark initially dropped to $95.50 after President Trump and China’s Xi Jinping met but rebounded as officials called the discussions productive.
The talks addressed economic cooperation and the reopening of the Strait of Hormuz, a critical chokepoint for global oil shipments. Markets had priced in geopolitical risks linked to Iran, but Trump’s push for Beijing to mediate with Tehran eased concerns. Both leaders also agreed to strengthen bilateral ties, with Xi emphasizing partnership over rivalry.
Despite the relief rally, supply deficits persist, with the IEA warning of tight global inventories. The meeting’s outcome may temper short-term volatility but leaves longer-term supply risks unresolved.