U.S. President Donald Trump said his patience with Iran was running out and that Chinese President Xi Jinping had agreed that Tehran must reopen the Strait of Hormuz, though China gave no indication it would apply pressure on the Islamic Republic.
Speaking aboard Air Force One as he returned from Beijing on Friday, Trump said he was considering whether to lift U.S. sanctions on Chinese oil companies buying Iranian oil. China is the biggest buyer of Iranian crude. The president said he did not ask Xi for a firm commitment to pressure Iran, noting that "when you ask for favors, you have to do favors in return." Trump claimed that U.S. forces had "wiped out" Iran's armed forces and suggested "a little cleanup work" might still be needed.
Iran effectively shut the strait to most shipping in response to U.S.-Israeli attacks that began on February 28, causing an unprecedented disruption to global energy supplies. Before the conflict, about a fifth of global oil and liquefied natural gas passed through the waterway. The U.S. paused its attacks last month but began a blockade of Iranian ports. Tehran has said it will not unblock the strait until the U.S. ends its blockade.
Oil prices rose around 2% to approximately $108 per barrel on concerns over a lack of progress in resolving the conflict. U.S. Treasury yields hit their highest in around a year as traders anticipated the Federal Reserve may need to hike rates to rein in inflationary pressures from the blockade. The UAE announced it would accelerate construction of a new pipeline to its Port of Fujairah just outside the strait, after a vessel heading to it was sunk this week.
Iranian Foreign Minister Abbas Araqchi said Tehran had received messages from the U.S. indicating Washington was willing to continue talks and expressed hope that negotiations would advance to secure the strait and normalize traffic. Trump, however, warned that he would "not be much more patient" and insisted Iran should make a deal, reiterating his demand that Tehran abandon its nuclear research and relinquish its stockpile of enriched uranium.
Key Takeaways:
1. Trump says Xi Jinping agreed Iran must reopen the Strait of Hormuz after Beijing talks, though China gave no indication of applying pressure.
2. Iran shut the strait to most shipping in response to U.S.-Israeli attacks starting February 28 and will not unblock it until the U.S. ends its port blockade.
3. About a fifth of global oil and LNG shipments passed through the waterway before the conflict.
4. Oil prices rose around 2% to approximately $108 per barrel on concerns over lack of progress in resolving the conflict.
5. Trump is considering lifting U.S. sanctions on Chinese companies buying Iranian oil.
