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West Texas Intermediate crude climbed above the key $100-per-barrel level on Friday, as markets reacted to fresh comments from US President Donald Trump following his summit with Chinese President Xi Jinping, while ongoing tensions surrounding the Strait of Hormuz continued to fuel fears over global energy supplies.
WTI crude advanced more than 3% to trade near $100.90 per barrel, extending its weekly rally after Trump stated that China had agreed to purchase US oil. Investors viewed the remarks as a potential signal of stronger global demand, despite the absence of any official confirmation from Beijing.
The two-day Trump-Xi meeting concluded without a concrete agreement on reopening the Strait of Hormuz, one of the world’s most critical oil shipping routes. However, Trump indicated that China would participate in efforts aimed at restoring stability to the strategic waterway, although operational details remain unclear.
Markets interpreted the comments as another bullish catalyst for crude prices, particularly as geopolitical risks in the Middle East continue to threaten global supply chains. Analysts warn that even a temporary disruption in Hormuz traffic could trigger sharp increases in energy prices worldwide.
A prolonged closure of the strait could eventually force demand destruction across major industries, including aviation, logistics, and sectors heavily dependent on air freight. While Europe may initially manage shortages through price adjustments and alternative sourcing, an extended disruption lasting several months could significantly strain available reserves and intensify inflationary pressures.
The geopolitical backdrop remains a dominant driver for oil markets, with traders closely monitoring developments related to Middle East energy flows, US-China trade dynamics, and the broader impact of rising crude prices on global inflation expectations.
