Trump heads to China as Iran war cost nears $29b amid rising tensions

Oil prices pulled back in Asian trade Wednesday, reversing a three-session climb as markets took stock of shifting demand cues and persistent worries about global economic growth.

As of 11 am Tokyo time, both major benchmarks were softer, with traders digesting mixed signals from economic data and ongoing geopolitical developments.

The retreat follows a run of gains earlier this week that had been supported by supply concerns and optimism about sustained fuel demand.

Read more here.

Donald Trump was due in Beijing Wednesday on the first visit to China by a US president in nearly a decade, as he seeks to ramp up trade despite potential friction over Taiwan and Iran.

Leaving Washington on Tuesday on a trip that was delayed by his war, Trump said he expected a "long talk" with counterpart Xi Jinping about Iran, which relies on China as the top customer for its US-sanctioned oil.

But he also played down disagreements on Iran, saying that Xi has been "relatively good, to be honest with you".

"I don't think we need any help with Iran. We'll win it one way or the other. We'll win it peacefully or otherwise," Trump told reporters as he left the White House.

China's top diplomat urged Pakistan to step up mediation efforts between Iran and the United States, and to help "properly" address the reopening of the Hormuz strait, Chinese state media said on Wednesday.

Foreign Minister Wang Yi spoke to his Pakistani counterpart Ishaq Dar in a call on Tuesday, state news agency Xinhua reported.

US President Donald Trump is expected to arrive in Beijing on Wednesday evening for talks with leader Xi Jinping, whose country is a key strategic and economic partner of Iran.

Wang called on Pakistan to "step up mediation efforts, and contribute to properly addressing issues related to opening the Strait of Hormuz", state news agency Xinhua said.

"China will continue to support Pakistan's mediation efforts and make its own contribution toward this end," Wang said, according to Xinhua.

Pakistan has emerged as the key mediator between the United States and Iran, who are in the process of negotiating a peace agreement after the conflict.

The Iranian government rejected on Tuesday the idea of amending its proposals, which Trump has deemed "garbage".

Commercial shipping through Hormuz increasingly appears to be operating under dark or "Emcon" conditions, according vessel tracker Windward. "IRGC fast craft activity expanded across both Hormuz corridors, including swarm-style formations and escort-like behavior near commercial traffic," the marine tracking site reported. Windward identified nine commercial tanker transits through Hormuz on May 11, including "dark fleet-linked" LPG and product tankers. Qatar LNG cargoes also resumed transiting Hormuz for the first time since the February closure. "Emcon" in shipping stands for "emissions control", during which vessels minimise radio, radar, and electronic emissions to avoid detection by military radars or intelligence gathering systems in the region. It is a high-stakes "hide-and-seek" game, with ships trying to move through a critical, high-risk corridor without being detected.

US President Donald Trump told US media before he boarded the Air Force at Joint Base Andrews, Maryland, en route to China: "We don't have to rush anything. We have a blockade which allows them no money. It's a very simple thing: we cannot let them have a nuclear weapon — because they'd use it."

At a US Senate hearing on the Pentagon’s proposed $1.5 trillion budget, Defence Secretary Pete Hegseth pointed to what he called "battlefield gains" and said the US Navy blockade had severely strained Iran’s economy. He pushed back on appeals to reopen the Strait of Hormuz despite mounting pressure from lawmakers over rising US fuel prices.

The conflict began on February 28 with Operation Epic Fury, a wave of US airstrikes targeting Iranian nuclear facilities. Tehran responded with retaliatory attacks, before a Pakistan-brokered ceasefire took shape around April 8. That truce is now on "life support", as per Trump.

Pentagon officials told senators the fighting has cost nearly $29 billion so far and claimed the lives of 13 US service members. Democrats pressed for a clearer "and exit strategy, while many Republicans defended the sustained pressure campaign as necessary to halt Iran’s nuclear ambitions.

Israeli strikes killed 13 people in southern Lebanon on Tuesday, including a soldier, a child and two rescue workers, the health ministry said.

"A strike on the city of Nabatieh left five dead, including two Civil Defence rescuers," the ministry said, while another strike in around Jebchit left four dead "including a soldier and a Syrian national" and a third strike in Bint Jbeil killed "four civilians, including a child and a woman".

Day 74: Iran signals potential 90% Uranium enrichment

Day 73: Trump calls Iranian response 'totally unacceptable'

Day 72: 'As of today, Tehran’s restraint is over': Iran official

Day 71: Iran keeps US waiting on response to peace plan

Day 70: US fires on Iran tankers as talks hang in balance

Day 69: Iran creates agency to control shipping at the Strait of Hormuz

Day 68: Trump threatens 'higher level' bombing of Iran if deal not agreed

Day 67: 'Project Freedom' paused 'for a short period': Trump

Day 66: UAE intercepts 12 ballistic missiles, 3 cruise missiles, 4 drones