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Trump to address Xi on selling weapons to Iran; Beijing has considered shipping air defence systems to Iran via other countries to mask its involvement, something Trump has threatened to punish with 50% tariffs, according to The Telegraph

The potential for heightened tensions between the U.S.

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Trump to address Xi on selling weapons to Iran; Beijing has considered shipping air defence systems to Iran via other countries to mask its involvement, something Trump has threatened to punish with 50% tariffs, according to The Telegraph

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  • “They want to cut off arming and rearming the Iranians,” a source with knowledge of the trip preparations said. “They want any direct support to stop. There is a huge group of people who want to cut off Iranian oil supply altogether.”
  • A second military source said weapons were on the agenda, though they did not know what Mr Trump might offer in return for Chinese co-operation.
  • Sources and analysts said a softening of the US naval blockade of the Strait of Hormuz, which is holding up one fifth of China’s oil supply, could be among the concessions. Mr Trump may also encourage Mr Xi to buy US oil instead, they added.
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and China over Iran could lead to significant implications for global markets. Trump's threats of tariffs in response to China's military support for Iran could escalate risks in equity and commodity markets, particularly oil, given the potential impact on supply dynamics. Traders should watch for shifts in U.S.-China negotiations and how these may affect currency strength and overall market sentiment.

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