US President Donald Trump signaled that China is willing to support negotiations with Iran, as he pushes for a diplomatic resolution to end the war and reopen the Strait of Hormuz. Trump met with Chinese President Xi Jinping in Beijing on Thursday, where Xi reportedly offered assistance in resolving the crisis. The meeting came after a commercial vessel was apparently seized near the United Arab Emirates, adding to uncertainty over control of the critical strait.
Trump confirmed Xi's offer in an interview with Fox News. In a White House readout of the meeting, both sides agreed that the Strait of Hormuz must be open to support the free flow of energy. "President Xi would like to see a deal made. He did offer, he said if I can be of any help at all I would like to be of help," Trump said. China is the Islamic Republic's largest oil buyer and a key diplomatic partner, granting it significant leverage over Tehran.
A commercial vessel was seized by unauthorized personnel 38 nautical miles off the UAE coast on Thursday morning, according to the UK Maritime Trade Operations. The vessel was bound for Iran. The incident occurred as there appears to be an uptick in vessels transiting the strait, which usually handles about a fifth of the world's oil and liquefied natural gas supply. Its effective closure since late February has upended energy markets and led to global supply shortages.
Iran announced that a number of Chinese vessels will transit the strait following discussions with Beijing's foreign ministry, the semi-official Fars news agency reported. Vessels will be allowed through according to "Iranian management protocols." Iranian state TV reported that over 30 ships have been allowed passage through the strait since Wednesday night. The US has not commented on movements through the Persian Gulf's chokepoint, but 10 vessels carrying oil, fuel and gas have made it through since Sunday.
Brent crude ended Thursday's session above $105 a barrel. Oil prices have risen by nearly 50% since the war began, and the International Monetary Fund has warned of a broad global growth slowdown. The US-Iran ceasefire in place since April 8 has broadly held, though negotiations have reached a deadlock. Iran continues to resist US demands to reopen Hormuz and insists Washington must end its naval blockade, unfreeze billions of dollars of Iranian assets, and lift sanctions.
Key Takeaways:
1. US President Trump announced Chinese President Xi Jinping offered help in negotiations with Iran.
2. Ten vessels have transited the Strait of Hormuz since Sunday; Iran reported allowing over 30 ships through.
3. A commercial vessel was seized off the UAE coast by unauthorized personnel, raising regional tensions.
4. Brent crude is trading above $105 per barrel; oil prices have risen 50% since the war began.
5. The US-Iran ceasefire holds but negotiations are deadlocked; Iran refuses to reopen Hormuz without ending the blockade.
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