US and China agree to keep Strait of Hormuz open as Iran conflict deepens
President Xi Jinping’s agreement to maintain the critical waterway’s openness follows a summit in Beijing, even as Iranian officials condemn the ongoing US-Israel military campaign and negotiations in Washington struggle to halt hostilities in southern Lebanon.
The White House has confirmed that Chinese President Xi Jinping agreed during bilateral talks in Beijing that the Strait of Hormuz must remain open to support the free flow of energy. The statement from the US administration underscores a diplomatic consensus between Washington and Beijing to stabilise global markets amid the ongoing tensions surrounding the conflict in Iran.
The agreement was reached as President Donald Trump and President Xi concluded a two-day summit in the Chinese capital. The engagement covered a broad range of issues, including trade relations, artificial intelligence, and geopolitical stability. Prior to the conclusion of the talks, President Trump indicated to media outlets that China intended to purchase American oil to satisfy its domestic demand, a move viewed as part of a broader effort to extend a trade truce between the two nations.
Concurrently, the diplomatic landscape remains fractured in other theatres of the conflict. Iranian Foreign Minister Abbas Araghchi addressed fellow BRICS nations in New Delhi, urging them to condemn the US-Israel war on Iran as a violation of international law. Mr Araghchi insisted that Tehran would never bow to any pressure, highlighting the persistent diplomatic rift between Iran and the Western powers involved in the military campaign.
In a separate development aimed at de-escalating regional violence, a third round of direct negotiations between Lebanese and Israeli negotiators commenced in Washington, DC. The talks are intended to end hostilities in southern Lebanon, where Israeli attacks continue to impact towns and villages. The specific outcomes of these negotiations remain unclear as the fighting persists on the ground.
The convergence of these diplomatic events has had immediate financial implications. US stock markets posted gains on Thursday as the Trump-Xi summit began, with the Dow Jones Industrial Average rising 0.8 per cent and the S&P 500 increasing 0.3 per cent. The consensus on the Strait of Hormuz was seen as a key factor in reassuring investors about the stability of global supply chains during a period of heightened geopolitical risk.
