Oil Prices Jump on Trump Claim That China Agreed to Buy U.S. Crude
CNBC reported Friday that crude oil prices climbed sharply after U.S. President Donald Trump announced that China had agreed to purchase American oil following his meeting with Chinese President Xi Jinping.
Brent crude futures for July rose nearly 1.5% to $107.30 a barrel. U.S. West Texas Intermediate for June gained roughly 1.55%, reaching $102.74 per barrel.
Trump Touts a New China Oil Purchase Commitment
In a pre-recorded Fox News interview after the Xi meeting, Trump said Chinese ships would soon head to Texas, Louisiana, and Alaska to load American crude. The remarks lifted energy markets quickly.
Beijing has not confirmed any such purchase agreement. CNBC noted it contacted Chinese authorities for comment but received no reply before publication. The unconfirmed nature of the claim adds a layer of uncertainty to the rally.
Strait of Hormuz Adds to Market Optimism
Beyond the China oil deal announcement, traders also responded to joint statements on the Strait of Hormuz. Both leaders agreed the waterway must remain open, a significant signal given recent tensions in the region.
A White House official stated that Xi made clear China opposes any militarization of the Strait. Beijing also opposes toll charges on vessels transiting the route, the statement said.
Bessent Backs China’s Role in Reopening the Strait
U.S. Treasury Secretary Scott Bessent told CNBC Thursday that China has a direct economic incentive to help restore free passage through the Strait of Hormuz. Bessent said it is very much in Beijing’s interest to see the waterway reopened, given China’s heavy reliance on Gulf energy supplies.
Background: Why the Strait of Hormuz Matters
The Strait of Hormuz is the world’s single most important oil chokepoint. Roughly 20% of global petroleum liquids pass through the narrow passage between Iran and Oman each year. Any disruption — military or otherwise — can send immediate shockwaves through energy markets. Tensions over the strait have periodically spiked over recent months amid wider U.S.-Iran standoffs.
Markets Await Beijing’s Confirmation
Despite the sharp price move, the oil rally rests on an unverified claim. Analysts will be watching closely for any official Chinese confirmation of energy purchase commitments. Without that, traders may trim positions as the week closes.
The combination of a potential large-scale buyer and a commitment to keep shipping lanes clear gave bulls enough reason to push both Brent and WTI to multi-week highs on Friday morning.
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