US President Donald Trump made comments on China, Iran and Taiwan on Friday, Reuters reported. He said he discussed fentanyl with Chinese President Xi Jinping.<\/p>\n
Trump said China would buy \u201cbillions of dollars\u201d of US soybeans. He also said China agreed to buy 200 Boeing aircraft, with a potential commitment of up to 750 planes.<\/p>\n
He said the Boeing planes would have General Electric engines. He also said he would decide \u201cover the next few days\u201d whether to lift sanctions on Chinese oil companies that buy Iranian oil.<\/p>\n
On Iran\u2019s nuclear programme, Trump said he could support a 20-year suspension if there was a \u201creal\u201d commitment. He disputed reporting that Iran has kept its missile capacity, and said 80% was gone.<\/p>\n
Trump said he had not yet approved weapons for Taiwan, and said he may or may not do so. He said US policy on Taiwan had not changed and that the United States was not looking to have wars.<\/p>\n
Trump told a New York Times reporter that the reporter\u2019s Iran coverage was \u201ctreasonous\u201d. After the comments, the US Dollar Index (DXY) rose and then eased, but was up 0.24% at about 99.10.<\/p>\n
We should look back at how markets reacted to these kinds of presidential pronouncements as a guide for geopolitical risk. The comments on China, Iran, and Taiwan created short-term volatility, which we saw in the US Dollar Index’s jump back then. This pattern of headline-driven moves is something we must remain prepared for.<\/p>\n
We remember the promises of massive soybean and aircraft sales to China from that era. Looking back at trade data, U.S. soybean exports to China did see a surge in the following years, hitting over 34 million metric tons in the 2022\/2023 marketing year, though they have since moderated. This reminds us to trade the actual data and not just the initial announcements, as follow-through can be inconsistent.<\/p>\n
The discussion on lifting sanctions for buying Iranian oil is a classic example of geopolitical influence on energy markets. WTI crude futures at the time showed sensitivity to these comments, and this relationship persists today. As of early May 2026, with global oil demand firming up and OPEC+ maintaining production discipline, any news regarding Iranian supply can still cause significant price swings in crude options.<\/p>\n
We saw the cautious language on Taiwan back then, but the underlying tension has only grown, centering on the semiconductor industry. Taiwan now accounts for over 60% of the global foundry market, making any geopolitical statements a major risk factor for the entire tech sector. Traders should watch for volatility in semiconductor ETFs, using options to hedge against sudden escalations.<\/p>\n
This historical example shows how a mix of trade, energy, and security news can create sharp, unpredictable moves. For derivative traders in the coming weeks, this means being prepared for similar headline risks, especially with current US-China tensions remaining elevated. Buying straddles or strangles on major indices ahead of diplomatic meetings could be a prudent strategy to profit from the resulting volatility, regardless of direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Trump discussed fentanyl with Xi, touted big China purchases, weighed Iran oil sanctions, and Taiwan arms decisions.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[9],"class_list":["post-53433","post","type-post","status-publish","format-standard","hentry","category-live-updates","tag-dollar"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/53433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=53433"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/53433\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=53433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=53433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=53433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}