Brent crude oil climbed above $105 per barrel on Thursday as global markets reacted to rising geopolitical tensions and expectations around a key diplomatic meeting between the United States and China.
At the opening of Asian trading, Brent crude from the North Sea rose by 26 cents to $105.89 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) increased by 32 cents and reached $101.34 per barrel. Prices moved higher after a volatile week that kept traders on edge.
Investors now focus on the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Many traders expect the talks to influence global diplomacy, especially regarding efforts to end the ongoing Iran conflict that continues to affect oil supply expectations.
Reports indicate that Trump plans to urge Xi to encourage Iran to reach a political agreement with Washington. If that happens, it could ease tensions and improve stability in global energy markets.
On Wednesday, oil prices moved in the opposite direction. Brent crude fell by around $2 per barrel, while WTI dropped by about $1. Traders reacted to concerns that possible interest rate hikes could slow economic growth and reduce fuel demand worldwide.
Analysts at IG said oil prices currently trade within a narrow range. They added that markets may place too much hope on the Trump–Xi meeting as a solution to the Iran issue. According to them, speculation drives much of the current price movement.
The analysts also warned that if talks fail to produce progress on strategic issues such as the Strait of Hormuz, markets could face renewed pressure. In that case, diplomatic options may shrink, and geopolitical risks could rise again.
Overall, oil markets continue to react strongly to political developments and global economic signals, keeping prices highly sensitive and unstable.
