Oil Prices Surge 3.7% to Ten-Day High Following US-China Talks

Global oil prices rose significantly on Friday, May 15, 2026, with Brent crude reaching $109.64 per barrel, a 3.71% increase and its highest value in ten days. This surge occurred despite the conclusion of high-level meetings between US President Donald Trump and Chinese President Xi Jinping in Beijing. Markets reacted negatively to the lack of major breakthroughs in resolving the ongoing conflict in the Middle East, particularly regarding stalled negotiations between the USA and Iran over the Strait of Hormuz, a critical chokepoint for 20% of global oil and gas traffic. While both nations agreed in principle that the strait should reopen and Iran should not possess nuclear weapons, disagreements persist, with China opposing militarization and tolls. Additionally, unconfirmed reports suggested China might increase purchases of US oil to reduce Middle Eastern dependence. Concurrently, ceasefire talks between Israel and Lebanon began but yielded no immediate results amid continued bombings. The market's frustration with the diplomatic stalemate and persistent regional instability drove the upward trend in energy costs.