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Diplomacy · Geopolitics · Oil Markets · US-China Relations
President Trump has postponed his anticipated summit with Chinese leader Xi Jinping by approximately one month, citing the ongoing war with Iran and the need to remain in Washington D.C. to coordinate "Operation Epic Fury." The original meeting was scheduled for March 31-April 2, marking the first presidential trip to China since 2017.
The conflict with Iran, which began February 28, has significantly impacted global oil markets, with Iran attempting to block the Strait of Hormuz, a crucial waterway through which 25% of the world's seaborne oil (and 45% of China's oil) flows. This has driven oil prices as high as $106 per barrel.
In response, the U.S. plans to release 172 million barrels from strategic reserves, part of a 32-country effort to release 400 million barrels. Trump has expressed frustration with allies, including China, for not providing naval escorts in the Strait.
While China's Foreign Ministry called for a cease-fire, it has not committed to assisting with patrols. Treasury Secretary Scott Bessent clarified that any summit delay is solely due to the war effort, not China's lack of assistance, as preparatory trade talks continue in Paris.
