President Donald Trump and President Xi Jinping agreed to keep the Strait of Hormuz open during a Beijing summit. A White House readout confirmed both leaders affirmed the waterway must remain accessible.
President Xi opposed the militarization of the strait and the imposition of transit tolls. The diplomatic move aims to resolve a weeks-long crisis that maintained oil prices above $100 per barrel.
President Xi offered to broker a resolution between the U.S. and Iran. The Strait of Hormuz handles approximately 20% of global oil shipments.
News of the de-escalation immediately lowered crude prices. The announcement triggered a risk reassessment for energy sector investors.