Global oil prices showed an increase of over 1% on May 15, after U.S. President Donald Trump stated that China is interested in purchasing oil from the United States. The market dynamics were also influenced by concerns over shipping security in the Middle East, despite Iran’s reports of 30 vessels passing through the Strait of Hormuz.
This is reported by Finway
Oil price dynamics and geopolitical context
Brent crude futures rose by $1.17, or 1.11%, reaching $106.89 per barrel. Meanwhile, U.S. West Texas Intermediate oil increased by $1.10, or 1.09%, to $102.27 per barrel.
The rise in oil prices occurred against the backdrop of the White House chief’s statements that China is interested in purchasing American oil. In his interview with Fox News, Trump also noted that his patience with Iran is running out, urging Tehran to reach an agreement with Washington.
“China wants to buy oil from the United States.”
The situation in the Strait of Hormuz and its impact on the market
Recently, Iranian forces seized a vessel off the coast of the United Arab Emirates that was heading towards Iranian waters. At the same time, the White House confirmed that President Trump and Chinese leader Xi Jinping reached an agreement on the importance of maintaining an open shipping route through the Strait of Hormuz.
Additional tension was created by reports of an Indian cargo ship carrying livestock, which sank while traveling from Africa to the UAE, in waters near Oman.
The Iranian Revolutionary Guard Corps reported that since Wednesday evening, 30 vessels have crossed the Strait of Hormuz – in comparison, before the war, this figure reached 140 vessels per day.
Markets are closely monitoring the situation’s developments, particularly the outcome of U.S. President Donald Trump’s meeting with Chinese leader Xi Jinping, which could influence the further course of events in the context of the war with Iran and the stability of global oil supplies.