RoydadNaft –  Brent crude futures rose by 26 cents, or 0.25%, to $105.89 per barrel. U.S. West Texas Intermediate (WTI) crude futures also climbed 32 cents, or 0.32%, to $101.34 per barrel.

Global oil prices edged higher in Thursday trading as investors awaited a meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing, while markets continued to monitor developments surrounding the Iran war and ongoing disruptions to oil supplies.

According to a report by Reuters, traders are hopeful that talks between the U.S. and Chinese leaders could help ease tensions in the Middle East and reopen energy export routes, although analysts remain skeptical about the likelihood of any major breakthrough in the negotiations.

Trump, who arrived in Beijing on Wednesday evening, is expected to discuss a range of issues with Xi Jinping, including the Iran conflict, trade, tariffs, and arms sales to Taiwan. Analysts believe the U.S. president is likely to urge China to use its influence over Iran to help end the war, though Beijing is not expected to adopt a hardline stance against Tehran.

Market analysts have warned that if negotiations fail and restrictions in the Strait of Hormuz continue, the risk of renewed military escalation and sustained pressure on global energy markets could increase. Experts say the continued closure of the strategic waterway may limit Washington’s options and raise the possibility of further military action.

Meanwhile, Iran has sought to offset part of the pressure caused by maritime transport restrictions by strengthening alternative energy export routes. Reports indicate that Tehran has reached agreements with Iraq and Pakistan for the transfer of oil and liquefied natural gas (LNG).

Analysts also noted that the prolonged Middle East crisis has heightened concerns over tightening global oil supplies, while also fueling fears of rising inflation and higher interest rates in the U.S. economy.