Oil Jumps on Trump Claim China Will Buy U.S. Crude After Xi Talks

CNBC reported Friday that oil prices climbed sharply after President Donald Trump claimed China had agreed to purchase American crude, following direct talks with Chinese leader Xi Jinping.

International benchmark Brent crude for July rose 3.25% to $104.46 a barrel. U.S. West Texas Intermediate for June advanced 2.11% to $103.30 per barrel.

Trump Makes the Case for a China US Crude Deal

Trump made the claim in a pre-recorded Fox News interview after his Xi meeting. He said Chinese vessels would begin arriving at ports in Texas, Louisiana, and Alaska to collect American oil.

Beijing had not confirmed any such agreement as of publication. CNBC reached out to Chinese authorities and received no response before the story went live.

The unverified nature of the claim did not prevent markets from reacting. Traders pushed both benchmarks higher as the session progressed.

Strait of Hormuz Pledge Adds to the Bullish Mood

A separate development also lifted sentiment. Both leaders agreed during their discussions that the Strait of Hormuz must remain open to commercial shipping.

Xi made clear China opposes any militarization of the strait, according to a statement attributed to a White House official. The waterway carries roughly one-fifth of global oil supply, making any threat to its passage a significant market catalyst.

U.S. Treasury Secretary Scott Bessent told CNBC separately that China would work behind the scenes to help restore normal transit through the strait. Bessent framed it as a matter of Chinese self-interest, saying open passage benefits Beijing’s own energy security.

Background: Why These Talks Matter for Energy Markets

The Trump-Xi meeting comes against a backdrop of elevated oil prices and persistent tension around Middle East shipping routes. Concerns over Iran’s influence near the Strait of Hormuz have kept a risk premium baked into crude benchmarks for months.

At the same time, U.S. crude production has been running near record highs. Any arrangement that opens a large, consistent buyer in China would represent a significant shift in global energy trade flows.

Markets Will Watch Beijing’s Response Closely

Traders now face an unanswered question: will China officially confirm the purchases or stay silent? Past instances of unverified Trump trade claims have led to rapid reversals if official confirmation fails to materialise.

For now, markets are taking the signal at face value. Brent holding above $104 suggests bulls are willing to bet the deal has substance.

Read Next: What Scott Bessent’s Treasury Priorities Mean for Global Markets