January 1, Xi Makes MASSIVE Pledge to Trump on Iran — Oil Markets Explode

Wyatt’s Take

• President Trump just secured a huge win in Beijing — Xi Jinping pledged China won’t arm Iran, a massive shift that could reshape the Middle East power balance
• The agreement comes as Trump pushes China to buy American oil instead of Iranian crude, potentially opening billions in new markets for Texas, Louisiana, and Alaska
• While Xi offered help ending regional conflicts, he’s still buying Iranian oil to keep the Strait of Hormuz open — showing Trump’s walking a fine line between dealmaking and confrontation

President Donald Trump announced a major breakthrough from his high-stakes Beijing summit: Chinese President Xi Jinping has pledged not to provide military equipment to Iran.

“He said he’s not going to give military equipment. That’s a big statement. He said that today. That’s a big statement. (He) said that strongly,” Trump told Fox News host Sean Hannity Thursday.

The commitment represents a significant shift as the Trump administration has increasingly cast China not just as an economic rival, but as a key enabler of adversarial regimes. Beijing’s economic and material support for Iran has emerged as a central focus of this week’s critical talks with Xi.

U.S. officials have repeatedly accused China of propping up Iran’s military and economic strength through oil purchases, dual-use exports, and intermediary networks.

Trump revealed that Xi also offered assistance in ending regional conflicts.

“He said, if I can be of any help at all, I would like to be of help,” Trump said.

But the Chinese leader made clear his country’s dependence on Iranian oil remains a sticking point.

“But at the same time, he said, you know, they buy a lot of their oil there, and they’d like to keep doing that. He’d like to see Hormuz Strait opened,” said Trump. “I said, well, we didn’t stop it. They did it.”

China relies heavily on Iranian oil imports, purchasing around $31 billion to $32 billion of Iranian crude annually, according to Reuters.

Beijing ordered firms to ignore U.S. sanctions targeting Iranian oil in May — a direct challenge to Washington’s crackdown. China’s Commerce Ministry invoked a 2021 “blocking statute” ahead of the summit which bars companies from complying with “illegitimate” foreign sanctions.

The order targets several Chinese refiners accused by the U.S. of buying Iranian crude, including large independent processors known as “teapot” refineries.

Trump questioned Iran’s toll-charging activities in the Strait of Hormuz.

“He didn’t like the fact that they’re charging tolls,” said Trump. “I don’t know if they are or not. I don’t know who would pay him. I mean, where do they put the money to come to countries decimated, you know, they’re charging tolls where’s the money going.”

The president said he believes a deal will be reached with China buying oil from the U.S. by the end of the trip, prompting a spike in oil prices.

“They’re going to go to Texas. We’re going to start sending Chinese ships to Texas and to Louisiana and to Alaska. And I think that was another thing that was agreed to it. That’s a big thing,” said Trump.

The two leaders held a bilateral tea meeting Friday morning local time in Beijing at the Zhongnanhai compound in their final meeting before Trump’s return to the White House.

Wyatt Matters

This is what real leadership looks like. While career politicians fumble around with empty rhetoric, Trump sits down with world powers and gets concrete commitments that protect American interests. Getting China to stop arming Iran while opening massive new markets for American oil workers? That’s the kind of dealmaking that puts working Americans first. Beijing knows they’re dealing with strength again, not weakness.