Major Deal Between the United States and China
Markets are following U.S. President Donald Trump’s visit to China closely. The meeting proved fruitful, as both sides agreed on a number of deals that could revive trade exchange between the two countries. It is well known that the American and Chinese economies are the two largest economies in the world in terms of GDP. In anticipation of this summit, oil prices rose this morning, with Brent crude reaching $108.38 per barrel in the futures market, while West Texas Intermediate climbed to $104.56.
Today’s rise in oil prices was also supported by a deal announced by Trump involving China’s purchase of American crude oil, in addition to a series of trade agreements that Trump described as “fantastic.” Commenting on his visit to China, Trump stated that it had been an excellent trip that produced many positive outcomes. He emphasized that these trade agreements serve the interests of both countries and expressed great respect for the Chinese president.
Regarding the Iranian issue, Trump said that the two presidents discussed many files and issues, foremost among them the war in Iran. He pointed out that Xi also agrees with the American position opposing Iran’s possession of nuclear weapons, and that both sides want to reopen the Strait of Hormuz and end the crisis, describing the war as “crazy.”
Trump’s visit to China concludes this evening, after which he and the American delegation will return home having secured clear support from China. Despite the close ties between China and Iran in confronting American dominance, the Trump–Xi summit may reshape strategic interests, and these statements reflect China’s abandonment of the Iranian regime.
Returning to the oil market, it is worth noting that China is the world’s largest oil importer and the leading importer of Iranian oil. Redirecting imports from Iran to American crude represents a genuine gain and a breakthrough in the stagnant relations between the two countries.
U.S. Dollar Index
The U.S. dollar rose broadly against major currencies and gold, with the dollar index reaching 99.07 against a basket of major currencies, its highest level in five weeks.
Other currencies weakened against the dollar. The euro fell to $1.162, while the British pound also declined to $1.335. The dollar-yen exchange rate reached 158.54 yen, surpassing an important level for the Japanese currency. This came despite efforts by the Japanese government and the Bank of Japan aimed at supporting the yen and preventing the dollar from exceeding the 160-yen level.
In the gold market, price movements in recent hours have been relatively stable but leaning downward. The general short-term trend remains bearish, with gold once again testing the 4520 level against the dollar. Spot gold is currently trading at $4546.
