WTI Crude Holds Near $100 as Markets Monitor Middle East Tensions and Trump-Xi Summit

WTI crude futures traded little changed near $100 per barrel on Thursday as investors closely monitored developments in the Middle East alongside the high-level summit between US President Donald Trump and Chinese President Xi Jinping.

Oil markets remained focused on escalating geopolitical risks surrounding the Strait of Hormuz, one of the world’s most critical energy shipping routes. Reports from Iran indicated that approximately 30 vessels crossed the strait in recent hours, while Tehran has reportedly started allowing transit for certain Chinese ships, signaling selective easing measures amid ongoing regional tensions.

At the same time, US Secretary of State Marco Rubio urged China to leverage its influence over Iran in an effort to help reopen and stabilize shipping activity through the Strait of Hormuz.

According to the White House, Xi Jinping also expressed interest in increasing Chinese purchases of US crude oil, a development that markets interpreted as a potentially important signal for future energy trade flows between the world’s two largest economies.

Meanwhile, the International Energy Agency (IEA) warned that the global oil market is likely to remain significantly undersupplied through October, even if the current conflict in the Middle East is resolved next month. The agency noted that crude and fuel shipments through the Strait of Hormuz fell by nearly 6 million barrels per day during the first quarter, intensifying concerns over global supply availability.

Adding further pressure to the market, Saudi Arabia reportedly informed OPEC that its oil production had fallen to the lowest level since 1990, reinforcing fears of tighter global supply conditions at a time of elevated geopolitical uncertainty.

The combination of constrained supply, shipping disruptions, and rising geopolitical instability continues to support elevated oil prices, with analysts warning that energy markets are likely to remain highly volatile in the coming months.