US President Donald Trump said oil prices would “collapse” after his upcoming trip to China, while also predicting a major rally in financial markets once the ongoing Iran war comes to an end.
Speaking to reporters before departing for Beijing for a summit with Chinese President Xi Jinping, Trump said oil prices were already lower than many analysts expected despite the ongoing conflict and disruptions in global energy markets.
“When this war is over, oil is going to drop, the stock market’s going to go through the roof,” Trump said, adding that the United States was entering a “Golden Age.” He also claimed that economic numbers after the war would be unlike anything seen before.
Trump further suggested that he personally held the power to decide the future course of the conflict, saying he could take actions that would leave Iran needing “25 years to rebuild,” but stressed that he preferred a “complete and total” resolution instead.
The comments come as Trump heads to China for a high stakes meeting with Xi Jinping focused on trade, energy security, the Iran war, and the disruption of global shipping routes around the Strait of Hormuz.
Global oil markets have remained highly volatile since the US Israeli conflict with Iran escalated earlier this year, disrupting one of the world’s most critical oil transit routes. Brent crude recently crossed the $100 per barrel mark before easing ahead of the Trump Xi summit. Trump’s remarks reflect expectations that diplomatic progress involving China could help reduce tensions in the Middle East and reopen disrupted shipping routes, potentially easing fears of global supply shortages.
China remains one of Iran’s biggest oil buyers and holds significant economic leverage in the region. US officials have repeatedly stated that Beijing could play an important role in pressuring Iran to stabilize energy flows and avoid further escalation.
Oil prices have become a major political issue in the United States as rising fuel costs continue to add pressure on inflation and consumer spending. Recent reports showed US gasoline prices surged sharply following disruptions in Gulf energy supplies and fears over prolonged instability in the region.
Trump’s China visit is also expected to include discussions on trade, semiconductor restrictions, artificial intelligence cooperation, and broader economic ties between the world’s two largest economies.