The much-anticipated summit between President Donald Trump and Chinese President Xi Jinping has been shelved. The reason: a rapidly escalating conflict with Iran that has reshuffled Washington’s diplomatic priorities and, in the process, jolted global markets from crude oil to crypto.

The delay, confirmed around May 10, throws a wrench into what was supposed to be a pivotal moment in US-China trade negotiations. Back on February 20, a White House official had confirmed Trump would travel to Beijing the following month. That trip never happened, and now the rescheduled meeting is on ice too.

Why Iran changed the calculus

Here’s the thing about the Strait of Hormuz: roughly 20% of China’s oil imports flow…