Iran featured heavily in this week’s Beijing summit between US President Donald Trump and China’s President Xi Jinping, but initial indications suggest that a breakthrough remained elusive. Mr Trump said China has pledged not to provide Iran with military equipment, and a White House statement said “the two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy. President Xi also made clear China’s opposition to the militarization of the Strait and effort to charge a toll for its use.” However, there were no announcements of any concrete measures to be take to achieve these goals.
As it stands, the outlook is for the Strait of Hormuz to remain largely closed, with only a small number of vessels making the passage either with Iranian permission or through clandestine voyages. Global inventories will continue their rapid decline, increasing the likelihood of a sharp price correction this summer (MEES, 15 May). (CONTINUED - 158 WORDS)