Trump plans talks with Xi on energy and Iran conflict as oil disruptions rattle global markets
The first US presidential visit to China in nearly a decade centers on reopening the Strait of Hormuz, with gasoline prices threatening to breach $5 per gallon.
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Add us on Google by Editorial Team May. 12, 2026President Donald Trump is heading to Beijing for a summit with Chinese President Xi Jinping on May 14-15, and the agenda reads like a geopolitical stress test. At the top of the list: the war in Iran, a choked-off Strait of Hormuz, and the energy crisis rippling through both economies.
It marks the first time a sitting US president has visited China in nearly a decade.
The Strait of Hormuz problem
Roughly a fifth of the world’s oil passes through the Strait of Hormuz on any given day. China’s crude oil imports dropped 20% in April 2026, a direct consequence of maritime disruptions in and around the strait.
Treasury Secretary Scott Bessent has publicly called on China to join an international effort to reopen the waterway.
Energy expert Tom Kloza has projected that gasoline prices could exceed $5 per gallon if the strait remains closed.
A ceasefire on life support
Trump himself has described the Iran ceasefire as being on “massive life support.”
The US position appears to be that China holds a unique card in this situation. Tehran’s economic ties to Beijing give Xi a degree of influence that Washington simply doesn’t have.
Analysts are skeptical. The consensus view heading into the summit is that significant breakthroughs on either Iran or broader trade issues are unlikely.
What’s not on the table
Taiwan and the broader US-China trade relationship are expected to hover in the background without any real resolution.
What this means for markets
For crypto markets, sustained high energy prices act as a drag on consumer spending and economic growth broadly, which historically hasn’t been kind to risk assets, Bitcoin included.
Elevated geopolitical tension typically strengthens the dollar as a safe haven, which puts downward pressure on dollar-denominated assets like Bitcoin and Ethereum.
If the $5-per-gallon threshold gets breached heading into summer, the political pressure on the administration to find a resolution will become enormous.
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