Trump-Xi Energy Deal: China to Buy US Oil Amid Iran Crisis, Climate Cooperation Falters

Energy Talks

US officials raised the prospect of China buying more American oil to offset supply disruptions from the Iran war, following two days of talks between President Trump and President Xi in Beijing, Reuters reported.

Trump-Xi Energy Deal: China to Buy US Oil Amid Iran Crisis, Climate Cooperation Falters — Source: www.carbonbrief.org

Treasury Secretary Scott Bessent told CNBC that the two nations discussed China “buying more US energy”, specifically from Alaska, calling it a “natural” fit.

The Hong Kong-based South China Morning Post revealed that Trump and Xi agreed the Strait of Hormuz must remain open to “support the free flow of energy.”

Climate Cooperation in Question

State-run China Daily said cooperation on energy security and climate governance is “essential” because both countries have “considerable influence over international institutions.”

However, an article in Legal Planet noted the meeting had no climate agenda, with the two nations now moving in “radically different directions.”

Background

The Iran war has severely disrupted oil supplies through the Strait of Hormuz, a critical chokepoint for global energy shipments. The US-China talks aimed to stabilize energy markets but avoided formal climate cooperation.

Previously, the Communist party-affiliated People’s Daily argued that addressing climate change requires “coordinated efforts and cooperation” between the two superpowers—a sentiment now at odds with the meeting’s limited scope.

El Niño ‘Supercharged’

Scientists warn that the El Niño weather pattern could “amplify climate extremes” in 2026, according to Climate Home News. There is an 82% chance of a “very strong” El Niño forming this year, based on the average of four weather forecasters cited by the Times.

The Independent reported that the phenomenon could be “supercharged” by a positive Indian Ocean Dipole, raising risks of fire, drought and extreme weather. Global fire outbreaks hit a “record high” in Africa and Asia from January to April, with 150 million hectares damaged—20% more than the previous record.

“Conditions are expected to worsen to the highest in recent history if a strong El Niño kicks in,” said researchers from the World Weather Attribution group, as cited by Reuters.

What This Means

The US-China energy deal may temporarily stabilize oil markets but undermines joint climate action. Meanwhile, the impending “supercharged” El Niño threatens to exacerbate disasters globally.

In parallel, the UK halved its contribution to the UN’s Green Climate Fund, shifting from development aid to military spending, while Ethiopia sees electric vehicles surge to 8% of its car fleet due to fuel shortages. These developments highlight a fragmented global response to climate and energy crises.

Global Briefs

Ethiopia EVs: Electric vehicles now make up 8% of Ethiopia’s car fleet, driven by soaring fuel prices and shortages, according to the Associated Press.
UK Aid Cut: The UK halved its latest contribution to the UN’s Green Climate Fund, moving from top donor to a lower rank, as reported by Climate Home News and Carbon Brief.

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