Oil prices experienced a slight increase on Thursday as market participants anticipated a meeting between U.S. President Donald Trump and Chinese President Xi Jinping later in the day, while traders remained attentive to developments regarding the Iran conflict. Brent crude futures increased by 13 cents, or 0.12%, reaching $105.76 a barrel by 0015, whereas U.S. West Texas Intermediate futures climbed 12 cents, or 0.12%, to $101.14.

On Wednesday, both benchmark oil futures contracts experienced a decline as investors expressed concerns regarding potential increases in U.S. interest rates. Brent crude futures experienced a decline exceeding $2 per barrel, whereas WTI futures saw a decrease of over $1. Trump arrived in Beijing on Wednesday evening and is set to engage in a series of meetings with Xi, with the objective of achieving economic gains, sustaining a delicate trade truce, and addressing complex matters such as the conflict in Iran and arms transactions with Taiwan.

Although Trump has expressed skepticism about the necessity of China’s assistance in concluding the war with Iran, it is anticipated that he will nonetheless seek Xi’s support in addressing the expensive and unpopular conflict. However, analysts indicated that he is improbable to receive the backing he seeks. “Failure to make meaningful progress on reopening the strait could leave the US with few options other than renewed military action,” analyst Tony Sycamore stated in a note.

Iran, in the meantime, seems to have strengthened its grip on the Strait of Hormuz, establishing agreements with Iraq and Pakistan for the transportation of oil and liquefied natural gas from the area. China remains the largest purchaser of Iranian oil, even in the face of sanctions imposed by the Trump administration. In 2025, over 80% of Iran’s exported oil was directed towards China, with Chinese independent refiners capitalizing on the opportunities presented by discounted oil subject to U.S. sanctions.