TOPSHOT – US President Donald Trump (L) and China’s President Xi Jinping arrive for talks at the Gimhae Air Base, located next to the Gimhae International Airport in Busan on October 30, 2025. Donald Trump and Chinese leader Xi Jinping will seek a truce in their bruising trade war on October 30, with the US president predicting a “great meeting” but Beijing being more circumspect. (Photo by ANDREW CABALLERO-REYNOLDS / AFP) (Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)
Andrew Caballero-reynolds | Afp | Getty Images
Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.
As U.S. President Donald Trump prepares to head to China, the Iran war still continues to threaten to overshadow the summit even before it begins.
With oil climbing, Saudi Aramco profits surging, and U.S. futures slipping, investors are entering a week where the Iran war overshadows trade, tariffs, and rare earths alike.
What you need to know today
Despite efforts to end the Iran war, U.S. President Donald Trump will head to his meeting with Chinese President Xi Jinping with the conflict hanging over him.
The Iran war will likely take center stage during the talks, potentially leaving less room for progress on trade disputes and China’s grip on critical rare earth supplies.
Over the weekend, Trump rejected a proposal from Iran, calling it “TOTALLY UNACCEPTABLE.” Reports from Iranian media and The Wall Street Journal said that Tehran sought to “end the war on all fronts,” as well as obtain sanctions relief and Iranian oversight of the Strait of Hormuz.
Details remain murky. Iran has continued to resist Washington’s demands over its nuclear program and stockpile of highly enriched uranium, leaving little indication that negotiations are close to a breakthrough.
In an effort to exert even more pressure, the State Department imposed sanctions on companies and individuals across the Middle East and China for allegedly helping Iran in its war efforts.
These developments suggest the conflict is far from contained. Israeli President Benjamin Netanyahu said Sunday that the war with Iran is “not over.”
Against that backdrop, U.S Treasury Secretary Scott Bessent will visit both South Korea and Japan ahead of Trump’s summit in China. He is expected to meet Japan Prime Minister Sanae Takaichi in Tokyo on Tuesday and Chinese Vice Premier He Lifeng in Seoul on Wednesday.
U.S. market futures slipped following the latest developments, though Asia markets appeared to buck the trend, with South Korea’s Kospi opening at a fresh record.
Oil prices climbed as prospects for peace dimmed, with both international benchmark Brent and U.S West Texas Intermediate rising more than 3% to trade at $105.09 and $99.23, respectively.
The surge in energy prices helped Saudi Aramco to report a 26% year-on-year jump in first-quarter profit on Sunday, beating analysts’ forecasts. The gains were aided by the full-capacity operation of a key pipeline, allowing it to bypass the increasingly vulnerable Strait of Hormuz.
Trump may still want a better deal with Iran. But before he can rewrite that script, he first has to navigate Beijing.
— Lim Hui Jie
