Crude oil prices edged higher on Thursday as traders remained focused on geopolitical developments involving Iran and awaited key discussions between US President Donald Trump and Chinese President Xi Jinping in Beijing.
Investors continued to assess supply risks in the Middle East alongside concerns over global economic growth and the potential impact of future US interest rate hikes.
Brent crude futures for July 2026 rose marginally to US$105.63 per barrel, while US West Texas Intermediate (WTI) crude futures for June 2026 traded at US$101.07 per barrel during early trade.
Both benchmark crude contracts recovered slightly after witnessing sharp declines in the previous trading session.
On Wednesday, Brent crude futures dropped more than US$2 per barrel, while WTI crude futures fell over US$1 as investors grew cautious over the possibility of additional US interest rate hikes.
Higher borrowing costs could slow economic activity and weaken global fuel demand, limiting upside momentum in oil prices.
Market participants are closely watching the meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing.
The discussions are expected to cover a range of sensitive issues, including the ongoing Iran conflict, trade relations and US arms sales to Taiwan.
While President Trump previously stated that he may not require China’s support to end the Iran war, analysts believe he could still seek assistance from Beijing to help stabilise the situation in the Middle East.
However, market experts remain sceptical about the likelihood of significant progress during the talks.
Oil traders also remain concerned about the Strait of Hormuz, one of the world’s most critical energy shipping routes.
Iran has reportedly strengthened its control over the region while reaching agreements with Iraq and Pakistan to facilitate oil and liquefied natural gas shipments.
Any disruption in the Strait of Hormuz could significantly impact global energy supplies and increase volatility in crude oil markets.
Analysts warned that failure to secure meaningful progress in reopening shipping routes could leave the United States with limited options beyond renewed military intervention.
China continues to remain the largest buyer of Iranian crude oil despite ongoing sanctions pressure from the United States.
More than 80% of Iran’s shipped oil in 2025 was reportedly destined for China, as independent Chinese refiners continue purchasing discounted Iranian crude.
The sustained demand from China has helped support Iranian oil exports despite geopolitical tensions and international sanctions.
WTI crude futures traded within a daily range of US$100.73 to US$101.41, while Brent crude futures moved between US$105.29 and US$106.17 during early trading hours.
Over the past 52 weeks, WTI crude prices have ranged between US$54.98 and US$117.63, while Brent crude has traded between US$58.72 and US$126.41.
Crude oil prices remain supported by geopolitical tensions surrounding Iran and uncertainty over developments in the Strait of Hormuz. At the same time, concerns over global economic growth and possible US interest rate hikes continue to limit gains. Investors are likely to monitor the outcome of the Trump-Xi meeting closely for further direction in energy markets.
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Published on: May 14, 2026, 8:26 AM IST
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