Oil hoverس around $100 after the White House confirms Trump and Xi discussed the Strait of Hormuz

Oil prices held near the $100 level on Thursday after the White House announced that US President Donald Trump and Chinese President Xi Jinping agreed on the importance of keeping the Strait of Hormuz open.

Global benchmark Brent crude futures for July delivery fell 58 cents to $105.05 per barrel by 9:36 a.m. Eastern Time, while US West Texas Intermediate crude futures for June delivery declined 46 cents to $100.56 per barrel.

A White House official said in a statement Thursday: “Both sides agreed that the Strait of Hormuz should remain open to support the free flow of energy,” adding that “President Xi also expressed China’s opposition to the militarization of the strait or the imposition of transit fees for its use.”

The official added that Xi showed interest in purchasing US oil, although Chinese state media did not mention any discussions regarding the Strait of Hormuz or oil purchases.

China’s state-run Xinhua News Agency reported that Trump and Xi “exchanged views on major international and regional issues, including developments in the Middle East.”

OPEC and IEA forecasts

OPEC and the International Energy Agency on Tuesday released their latest assessments of the Iranian war’s impact on the oil market.

OPEC lowered its forecast for global oil demand growth in 2026 to around 1.2 million barrels per day, down from a previous estimate of 1.4 million barrels per day, according to its latest monthly report.

The data also showed that the group’s oil production fell by 1.7 million barrels per day in April and has declined by more than 30%, or 9.7 million barrels per day, since the outbreak of the Iranian war in late February.

This report is expected to be the final OPEC report to include data from the UAE following its exit from the organization on May 1.

Meanwhile, the International Energy Agency said: “More than ten weeks after the outbreak of the Middle East war, growing supply disruptions through the Strait of Hormuz are draining global oil inventories at a record pace.”

The agency added that supply losses from Gulf producers have exceeded 14 million barrels per day, pushing total lost supply above one billion barrels, while warning that price volatility is likely to intensify as peak summer demand approaches.

ING analysts said in a note that “the duration of elevated fuel prices remains widely debated and is closely tied to geopolitical developments surrounding the closure of the Strait of Hormuz, as well as the risk of further damage to oil and gas infrastructure in the Middle East as the conflict escalates.”