Oil Prices Surge on Trump’s Claim China Will Buy U.S. Crude

CNBC reported Friday that oil prices climbed sharply after President Donald Trump announced China had agreed to purchase American crude oil, following a high-stakes meeting with Chinese President Xi Jinping.

International benchmark Brent crude futures for July rose 1.49% to $107.30 a barrel. U.S. West Texas Intermediate futures for June advanced 1.55%, settling at $102.74 per barrel.

Trump’s Crude Claims Lift Sentiment

In a pre-recorded Fox News interview following his Xi meeting, Trump said Chinese vessels would head to Texas, Louisiana, and Alaska to collect American oil. The remarks drove immediate market optimism. Beijing, however, has not confirmed any such energy agreement. CNBC reached out to Chinese authorities and received no response ahead of publication.

The lack of official confirmation from China adds uncertainty to the price gains. Traders appear to be pricing in the possibility of a deal rather than a done transaction.

Hormuz Stability Adds to the Rally

A secondary driver of the price move was renewed confidence around the Strait of Hormuz. Both leaders agreed the critical shipping lane must remain open, according to a White House official statement. Xi also signaled opposition to any militarization of the strait or attempts to impose toll charges on its use.

Treasury Secretary Scott Bessent separately told CNBC the previous day that China would work quietly behind the scenes to help restore access through the waterway. Bessent framed it as a matter of Chinese self-interest, noting how dependent Beijing remains on Gulf energy flows.

Background: Why Hormuz Matters to Global Oil

The Strait of Hormuz is the world’s most critical oil chokepoint. Roughly 20% of global petroleum supply passes through the narrow Persian Gulf passage. Any disruption there sends immediate shocks through energy markets worldwide. Tensions involving Iran have repeatedly put the strait in the spotlight over the past decade, making any signal of de-escalation a meaningful market catalyst.

Markets React, But Caution Lingers

Friday’s gains reflect genuine optimism on two fronts: fresh U.S. export demand and reduced geopolitical risk in the Gulf. But with no Chinese confirmation on the crude purchases, analysts will be watching closely for follow-through. Sustained price levels above $100 for WTI would mark a notable shift in the commodity landscape entering the summer demand season.

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