Rising tensions in the Middle East are adding uncertainty to the U.S.-China trade relationship, with potential implications for agricultural markets. StoneX Chief Commodities Economist Arlan Suderman says the ongoing conflict in Iran is creating ripple effects across global energy, fertilizer, and trade flows. “Obviously, China has been a long-bent partner with Iran and would like to maintain that. But they’d also like to increase their partnership with other Gulf states in the Middle East as well, who are opposed to Iran. And they also need some cooperation from the United States to get some concessions to help ease the pressure on their economy. So China’s trying to walk a very fine line here between providing support for Iran, one of its partners in the Middle East, also trying to build relationships with the United States and other Arab countries.” Suderman says that the balancing act could influence upcoming talks between President Donald Trump and Chinese President Xi Jinping. “And so I do see the meeting with President Trump in Beijing going forward, I do expect a trade agreement, and I do expect agricultural commodities to be a part of that, although I am not optimistic that soybeans will necessarily be a part of it.”
