By Ron Bousso

May 14 (Reuters) -

Energy Watch is a biweekly recap of the events and trends shaping global energy markets from ROI Energy Columnist Ron Bousso

U.S. President Donald Trump’s visit to China this week for meetings with his counterpart Xi Jinping has dominated headlines in recent days. The two met on Thursday for talks that focused mainly on trade between the world’s top two economies and the sensitive topic of Taiwan, though the energy crisis was also near the top of the agenda.

Trump appears to have arrived in China with a weakened hand, stung by setbacks to his flagship tariffs policy, a record-long government shutdown and, of course, the Iran war and continued closure of the Strait of Hormuz, now in its 12th week.

The two leaders agreed in their meeting that the vital waterway, through which China usually receives nearly a third of its oil imports, must be reopened for the free flow of energy, according to a White House readout. China has bought the vast majority of Iran’s crude since the U.S. imposed sanctions on Tehran in 2018, giving Beijing significant leverage, in theory at least, wrote ROI Asia Commodities Columnist Clyde Russell.

So far, however, China has been happy to allow Pakistan to lead mediation efforts in the U.S.-Iranian standoff. U.S. Treasury Secretary Scott Bessent said on Thursday he believes Beijing will do what it can to reopen the waterway. Let's see.

Meanwhile, the energy markets have entered a period of deceptive calm. China and the United States, the world’s two largest energy consumers, have both played a vital role in softening the impact of the abrupt loss of nearly a fifth of global oil supplies since the end of February. While U.S. oil exports surged to record highs in recent weeks, China sharply reduced its oil buying, tapping its vast oil reserves instead. This has created a unique dynamic that has soothed the oil market in recent weeks. But that may not last long. Read more in my latest column.

In other news:

• The Strait of Hormuz has emerged as the central battleground of the Iran conflict. The passage of a handful of oil and gas tankers in recent days, apparently with Tehran’s consent, hints at the world’s tacit acceptance of its control. This foreshadows a more dangerous phase in what is fast turning into a Hormuz war, I wrote earlier this week.

• Russia - despite heavy sanctions and international isolation - is quietly playing a key role in cushioning global commodity markets from the full impact of the war with Iran, wrote ROI Energy Transition Columnist Gavin Maguire.

As ever, don’t hesitate to contact me at ron.bousso@thomsonreuters.com or follow me on LinkedIn with any questions or thoughts.

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