U.S. President Donald Trump and Chinese President Xi Jinping concluded a two-day summit in Beijing by declaring the Strait of Hormuz must remain open. This agreement aims to secure global energy supplies through a waterway that handles nearly 20% of the world's oil. The region currently faces severe disruptions due to ongoing conflict with Iran.
President Trump announced that China expressed significant interest in purchasing U.S. crude oil. This strategic shift would reduce China's reliance on the Strait of Hormuz.
Energy markets rallied sharply following the announcement. West Texas Intermediate (WTI) futures surged 3.7% to exceed $104 per barrel. Brent crude rose 3.3% to reach approximately $109 per barrel.