Oil Prices Rise as Trump Announces China's Agreement to Purchase U.S. Crude

Oil prices rose on Friday after U.S. President Donald Trump announced that China has agreed to purchase American crude oil following discussions with Chinese President Xi Jinping. In a pre-recorded interview with Fox News, Trump stated, "They've agreed they want to buy oil from the United States... they're going to go to Texas, we're going to start sending Chinese ships to Texas and to Louisiana and to Alaska."

International benchmark Brent crude futures for July increased by 1.49% to $107.30 per barrel, while U.S. West Texas Intermediate futures for June advanced 1.55% to $102.74 per barrel.

China has not yet confirmed these energy purchases. Requests for comment from Chinese authorities were not immediately answered.

Additionally, both leaders agreed on the importance of maintaining open passage through the Strait of Hormuz. A White House official noted that President Xi expressed China's opposition to the militarization of the Strait and any efforts to impose tolls for its use.

U.S. Treasury Secretary Scott Bessent mentioned that China is expected to assist in reopening the Strait of Hormuz, emphasizing that it is in China's interest to ensure the strait remains open.

The Strait of Hormuz is a critical chokepoint for global oil transit, with approximately 20 million barrels per day passing through in 2025, accounting for about 25% of the world's seaborne oil trade.

The developments come amid ongoing tensions in the Middle East, with the Strait of Hormuz facing disruptions due to conflicts involving Iran, the U.S., and Israel.

China has previously emphasized the importance of maintaining security and unimpeded passage through the Strait of Hormuz, stating that it serves the common interests of the international community.