Oil prices climbed on Friday after United States President Donald Trump said China had agreed to buy American oil following discussions with Chinese President Xi Jinping.

Brent crude futures for July rose 1.49 per cent to $107.30 per barrel, while U.S. West Texas Intermediate futures for June increased 1.55 per cent to $102.74 per barrel.

“They’ve agreed they want to buy oil from the United States, they’re going to go to Texas, we’re going to start sending Chinese ships to Texas and to Louisiana and to Alaska,” Trump said in a pre-recorded interview with Fox News, after his meeting with Xi.

The gains also followed an agreement by both presidents that the Strait of Hormuz must remain open.

China also agreed to assist in negotiations with Iran and not to supply military equipment to Tehran, Trump said, adding that the Chinese leader also supports keeping the Strait of Hormuz open and free of tolls.

“They have an insatiable appetite for energy, and we have unlimited energy,” Trump said, adding that the U.S. produces more oil & gas than Saudi Arabia and Russia combined: “we’re doing twice as much oil and gas, as they are.”

China is by far the largest buyer of Iranian oil, purchasing around 90% of the country’s crude exports. In 2025, it imported about 1.4 million barrels per day of Iranian oil, according to U.S. government data.

China’s foreign ministry said on Friday that the two leaders reached “a series of new consensus” during their Thursday meeting, including an agreement to build “constructive, strategic stability” in bilateral relations over the next three years and beyond.