Oil prices softened on Thursday following reports from Iran’s state media that roughly 30 vessels had recently navigated the Strait of Hormuz, with the semi-official Fars news agency adding that Iran had begun permitting transit for certain Chinese ships.
On Thursday, gold prices fell slightly as investors directed their attention toward two key developments: the latest situation in the Middle East conflict and signals emerging from the meeting between US President Donald Trump and Chinese President Xi Jinping.
Silver slumped on COMEX over 4.5% after posting sharp gains earlier this week.
Oil dips
At the time of writing, the price of West Texas Intermediate crude was at $101 per barrel, down 0.1%, while Brent was down 0.4% at $105.25 a barrel.
Concern over potential US interest rate increases, fueled by higher fuel prices and subsequent inflationary pressures, led to a decline in both oil contracts on Wednesday.
Brent crude futures saw a loss of over $2 per barrel, while WTI futures dropped by more than $1.
Oil prices dropped Thursday after Iranian state media reported roughly 30 vessels crossed the Strait of Hormuz, and the Fars news agency cited a source claiming Iran allowed transit for some Chinese vessels.
The White House announced that during their meeting, Trump and Chinese President Xi Jinping concurred that the Strait of Hormuz is essential for the unimpeded global energy supply.
Furthermore, President Xi expressed the view that the “rejuvenation of China” is compatible with the goal of “Make America Great Again.”
President Xi indicated a willingness to purchase increased amounts of US oil, as reported by the White House, with the aim of decreasing China’s reliance on the Strait of Hormuz.
Despite this expressed interest, China, historically a minor purchaser of US crude, has not imported any since May 2025.
This cessation is attributed to the 20% import tariff that was enacted during the trade dispute.
The Strait of Hormuz, a critical energy corridor, has been largely closed since the Iran war began in late February.
Iran has reportedly increased its control, securing deals with Iraq and Pakistan for oil and LNG shipments.
A Chinese supertanker with 2 million barrels of Iraqi crude sailed through on Wednesday after a two-month Gulf stranding.
Separately, an Eneos-managed, Japan-linked crude oil tanker also passed through the strait on Thursday, the second such instance, according to LSEG ship-tracking data.
Gold eases, silver slumps
Gold prices eased from above $4,700 per ounce on Thursday as investors remained cautious.
At the time of writing, the COMEX gold contract was at $4,692.17 per ounce, down 0.3%, while silver was at $85.700 per ounce, down 4.1% from the previous close.
A 0.1% increase in the US dollar made metals, which are priced in the greenback, pricier for those holding other currencies.
US retail sales saw a modest increase in April, rising 0.5% following a revised 1.6% surge in March.
Excluding gasoline purchases, sales grew by 0.3%.
Meanwhile, the labor market remains generally firm, though the pace of tightening has eased, with initial jobless claims increasing by 12,000 to 211,000 for the week ending May 9.
The likelihood of a US interest rate cut at any point this year has been largely discounted, according to the CME Group’s FedWatch tool.
This shift is attributed to the sharp, energy-driven surge in both US producer and consumer prices observed in April.
Higher interest rates typically weigh on gold, a non-yielding metal, despite its traditional role as an inflation hedge.