Oil prices edged higher on Thursday as investors positioned cautiously ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing, with markets also closely monitoring developments around the Iran war and its impact on global supply routes.
Brent crude futures rose 13 cents or 0.12% to US$105.76 a barrel by 0015 GMT, while US West Texas Intermediate futures gained 12 cents or 0.12% to US$101.14.
The move followed a weaker session on Wednesday when both benchmarks slipped more than US$1 to US$2 a barrel as concerns over potential US interest rate hikes weighed on demand expectations and broader risk appetite.
Focus has now shifted to Trump’s visit to Beijing, where he is expected to hold a series of meetings with Xi aimed at securing economic agreements, maintaining a fragile trade truce and addressing geopolitical tensions including the Iran conflict and Taiwan-related arms sales.
“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.
Trump has said he does not think he will need China’s help to end the war with Iran, although analysts expect he may still seek Beijing’s involvement in easing the conflict, even if prospects for cooperation remain limited.
At the same time, Iran has tightened its influence over the Strait of Hormuz, with reports of agreements involving Iraq and Pakistan to facilitate oil and liquefied natural gas shipments from the region.
China continues to be the largest buyer of Iranian crude despite sanctions pressure, with more than 80% of Iran’s seaborne oil exports in 2025 reportedly heading to Chinese refiners that have benefited from discounted sanctioned supplies.
Reuters
