President Donald Trump is traveling to meet Chinese President Xi Jinping for the first time since a war involving Iran began, with the trip centered on pressing Beijing to reduce its backing of Tehran.
China is the largest buyer of Iranian oil, and according to NBC's Kristen Welker, it has been supporting Iran during the ongoing conflict. That makes Beijing a central player in how the war plays out economically and militarily, and gives Trump a direct reason to seek a face-to-face meeting with Xi.
What Trump Is Pushing For
Trump is expected to ask China to scale back its support for Iran and to help reopen the Strait of Hormuz. The Strait of Hormuz is a narrow waterway between Iran and Oman through which roughly 20% of the world's oil supply passes. Any disruption there tightens global oil supply and pushes energy prices higher worldwide.
China's position is complicated. As Iran's biggest oil customer, Beijing benefits from discounted Iranian crude, which it has continued buying despite Western sanctions. Asking China to reduce that trade means asking it to accept higher energy costs or find alternative suppliers, a significant economic ask.
Why the Timing Matters
The meeting comes at a moment when the Iran conflict is already putting pressure on global energy markets. If the Strait of Hormuz remains restricted or contested, shipping costs and oil prices stay elevated, affecting economies far beyond the Middle East, including India, which is a major importer of Gulf oil.
Whether Beijing agrees to reduce Iranian oil purchases or use its influence to ease the conflict remains the central question. China has historically resisted Western pressure to cut Iran ties, viewing the relationship as both economically useful and strategically valuable as a counterweight to U.S. influence.
Watch for any joint statement or communiqué after the Trump-Xi meeting, the language around Iran and the Strait of Hormuz will signal how much, if any, ground Beijing is willing to give.
Qatar's foreign ministry said mediators including Qatar, Pakistan, and Oman have reached "very progressive stages" in efforts to end the US-Iran war, pushing Brent crude down more than four percent.
Qatar confirmed it is mediating between the US and Iran but said no direct talks are currently planned. The clarification follows conflicting statements from President Trump, who claimed talks are under way, and Tehran, which denied any dialogue is happening.
Saudi Aramco reported sharply higher second-quarter 2026 profits as the Iran war restricts global oil supply and pushes crude prices up. Other oil supermajors also posted outsized earnings, raising concerns about sustained fuel cost pressure for importing economies.
President Trump called current Iran negotiations the "last chance" to end five months of conflict, pushing oil prices higher. Tehran denied formal talks are taking place, raising the risk of a diplomatic breakdown with direct consequences for global energy markets.
