BEIJING: Oil prices edged up on Thursday as investors awaited a meeting between U.S. President Donald Trump and Chinese President Xi Jinping later in the day as traders focused on the Iran war.
Brent crude futures were up 13 cents, or 0.12%, to $105.76 a barrel by 0015 GMT, while U.S. West Texas Intermediate futures rose 12 cents, or 0.12%, to $101.14.
Both benchmark oil futures contracts fell on Wednesday as investors worried about possible U.S. interest rate hikes. Brent crude futures fell more than $2 a barrel, while WTI futures fell more than $1.
Trump landed in Beijing on Wednesday evening and is heading into a series of meetings with Xi, aiming to secure economic wins, maintain a fragile trade truce and navigate thorny issues such as the Iran war and arms sales to Taiwan.
While Trump has said he did not think he would need China's help to end the war with Iran, the president is nonetheless expected to ask Xi for assistance in resolving the costly and unpopular conflict. But analysts said he is unlikely to get the support he wants.
"Failure to make meaningful progress on reopening the strait could leave the US with few options other than renewed military action," IG analyst Tony Sycamore said in a note.
Iran, meanwhile, appears to have tightened its control over the Strait of Hormuz, cutting deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region.
China is the biggest buyer of Iranian oil despite sanctions pressure from the Trump administration
More than 80% of Iran's shipped oil was destined for China in 2025, as Chinese independent refiners take advantage of discounted U.S.-sanctioned oil.
