Oil steadies near $101 as Trump-Xi talks loom and Iran supply risks persist

Oil steadied May 13, 2026, with West Texas Intermediate near $101 a barrel ahead of a May 14 meeting between U.S. President Donald Trump and Chinese President Xi Jinping, as unresolved Iran war tensions continued to constrain global supply. WTI fell 1.1% in the prior session, while Brent settled below $106. Trump said trade talks would take priority over the Middle East conflict. The U.S. has threatened banks and sanctioned additional entities tied to Iranian oil sales to China, Iran’s largest crude buyer. The International Energy Agency said global oil inventories are shrinking at a record pace and the market will remain “severely undersupplied” until October, even if the conflict ends in June. The Energy Information Administration said crude and fuel flows through the Strait of Hormuz fell by nearly 6 million barrels per day in the first quarter after hostilities began in February. A U.S. sanctions waiver covering Russian oil on water is set to expire May 16-17, exposing Indian refiners to supply risk.