Crude Oil Surges On U.S.-China Trade Deal, U.S.-Iran Stand-Off

(RTTNews) - A near-successful U.S.-China trade talks along with a fresh stand-off between the U.S. and Iran over a nuclear deal pushed up crude oil prices on Wednesday.

WTI crude oil for July delivery closed up by $3.17 to settle at $68.15 per barrel today. This is the highest since April 2, 2025. Brent crude for August was last seen up by $2.29 to trade at $69.16.

On the trade front, after talks between U.S. and Chinese officials in London concluded, U.S. President Donald Trump announced that a trade deal has been done with China. Trump added that China shall supply the much-needed rare earth minerals for the U.S., and reciprocally, the U.S. shall allow Chinese students to pursue their academics in American colleges.

Seen as a significant step for the global economy ahead, this, according to experts, should spur the demand for oil and other essential commodities.

On the geopolitical front, ahead of a planned sixth round of U.S.-Iran nuclear talks, Trump stated in a podcast that he is now less confident that Iran would agree to shut down its nuclear program.

However, he asserted that the U.S. would not permit Iran to possess a nuclear weapon. In response, Iran's defense minister warned that Iran would attack U.S. bases if required.

A successful nuclear deal would have resulted in the U.S. lifting sanctions against Iran, which, in turn, would have flooded the market with excess Iranian oil increasing supply side. But as of now that has become a distant possibility.

On the data front, according to a report from the Energy Information Administration (EIA), crude oil inventories in the U.S. decreased by 3.644 million barrels last week.

On the supply side, OPEC+ has concurred to increase production by 411,000 barrels per day for May, June and July, speeding up its plan to increase production.

Notably, the secretary-general of OPEC Haitham El-Ghais claimed yesterday that global demand will continue rising in the next 25 years to reach 120 million bpd, 24 percent more than the current level.