Oil Prices Waver as Trump Meets China’s Xi to Discuss Strait of Hormuz

Oil prices oscillated on Thursday as investors weighed fears that the energy shock from the U.S.-Israeli war with Iran will push up inflation around the world. But stocks rose on continued optimism over artificial intelligence.

Markets were keen for any updates from the meeting between President Trump and Xi Jinping, China’s leader. The summit was full of pleasantries, with Mr. Trump praising Mr. Xi, who delivered a stark warning on Taiwan, saying relations between Beijing and Washington could enter an “extremely dangerous place” if Mr. Trump ignored China’s demands.

The war in Iran has cast a shadow of uncertainty on the summit. The White House said Mr. Trump had pressed Mr. Xi to persuade Iran to end the war and reopen the Strait of Hormuz, the crucial waterway that has been effectively blocked since the war started. It was not immediately clear whether the United States had secured any new commitments from China.

After Thursday’s diplomatic overtures, Iran allowed some Chinese vessels to pass through the strait, according to semiofficial Iranian news agencies.