US President Donald Trump has predicted that fuel and electricity prices will decline “tremendously” once the Iran conflict is resolved, while separately claiming that Chinese President Xi Jinping has agreed not to supply weapons to Iran — a move that would effectively make Beijing a co-guarantor of any post-war settlement.
Speaking to Fox Business Network on Tuesday, Trump defended the US military campaign against Iran’s nuclear infrastructure, calling the 2015 Iran nuclear deal the “worst deal ever made.” He claimed Iran would have deployed a nuclear weapon had the US not acted, and said energy costs would fall sharply once hostilities end.
“Fuel prices, electricity prices — they’re all going to come down tremendously,” Trump said, though he offered no specific timeline.
China weapons claim
In a separate Truth Social post, Trump said China is “very happy” about the reopening of the Strait of Hormuz and claimed Xi had written a letter confirming Beijing would not supply weapons to Iran.
“They have agreed not to send weapons to Iran,” Trump wrote, adding that Xi’s response “essentially” confirmed China was not involved in arming Tehran.
China’s Foreign Ministry has repeatedly denied providing military support to Iran. However, Washington has long accused Beijing of backing Iran’s ballistic missile programme through the transfer of dual-use components — an allegation that previously prompted Trump to threaten 50 per cent tariffs on Chinese goods linked to weapons supply chains.
The framework appears designed to bind China into the broader Hormuz security arrangement, following the collapse of direct US-Iran talks in Islamabad earlier this month.
Sri Lanka implications
For Sri Lanka, where oil prices above $100 per barrel have driven fuel rationing and emergency measures, any credible path to lower global energy costs carries direct economic significance. The country’s petroleum sector remains under strain, with the Ceylon Petroleum Corporation managing tight stocks through scheduled shipments and QR-based rationing.
Whether Trump’s assurances translate into actual price relief depends on the durability of the ceasefire and the pace at which Hormuz shipping normalises — neither of which is guaranteed.
