Iran war raises stakes for US and China ahead of Trump–Xi talks
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- U.S. Treasury Secretary Scott Bessent urged China to join the United States in opening the Strait of Hormuz to international shipping during the upcoming Trump‑Xi summit.
- China worked behind the scenes to persuade Iran to hold peace talks in Pakistan, but analysts say Beijing will not act solely at Washington’s behest.
- China cut its exports of refined oil products, such as gasoline and jet fuel, to protect its domestic market as crude oil imports fell 20% in April, the lowest in nearly four years.
- U.S. Treasury imposed sanctions on Chinese independent refinery Hengli Petrochemical for buying billions of dollars of Iranian oil and warned two Chinese banks of secondary sanctions if they facilitate such trade.
- China remains the biggest buyer of Iranian oil, purchasing an average of 1.38 million barrels per day in 2025, despite U.S. pressure and sanctions.
Why it matters: China loses 20% of its crude oil imports in April, forcing domestic fuel price hikes and curtailing refined product exports, while U.S. sanctions pressure Chinese refiners and strain Sino‑US trade ahead of the summit.
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