Trump Visits China as US-Iran Ceasefire Teeters on Life Support

A 10-week war between the United States, Israel, and Iran has pushed global energy markets into crisis, with Donald Trump declaring the current ceasefire is on "massive life support." Since the conflict began on February 28, Iran has effectively closed the Strait of Hormuz, disrupting roughly 20% of global oil and LNG flows and driving Brent crude prices above $100 per barrel. The U.S. Department of War reports the conflict has cost the United States $29 billion, while the International Energy Agency warns of record depleting inventories and supply losses exceeding one billion barrels.

Diplomatic efforts stalled in mid-May after Trump dismissed Iran's latest peace proposal as "garbage." Iran demanded the lifting of the U.S. naval blockade, war compensation, and a cessation of Israeli strikes against Hezbollah in Lebanon. In response to the deadlock, the U.S. may restart naval and air operations to escort commercial ships through the strait, supported by Saudi Arabia and Kuwait lifting restrictions on U.S. military base use. Meanwhile, the Pentagon may rename the conflict "Operation Sledgehammer" to extend military authority without immediate congressional approval.

Economic fallout has reached a peak in the U.S., where April inflation hit a three-year high of 3.8%, largely driven by fuel costs. This surge has pressured the Federal Reserve to pause rate cuts, with some traders anticipating a hike in December. Amidst this volatility, Trump arrived in Beijing on May 13 for a summit with President Xi Jinping, bringing a delegation of tech leaders including Jensen Huang and Elon Musk to discuss trade, AI, and the Iran crisis, despite Trump's claims that he does not need China's help to win the war.