Beijing's Oil Stockpiles Help Keep Prices from Skyrocketing Amid Iran Conflict

When President Donald Trump launched his war against Iran in late February, energy analysts predicted that oil prices could more than double during a protracted conflict. Six months into the war, oil prices remain volatile but have not yet reached the dire projections.

Chinese President Xi Jinping's energy strategy has helped ease global demand for oil and moderated prices. China's massive stockpile of 1.4 billion barrels allowed it to cut crude imports significantly once the US and Israel began their bombardment and Iran effectively closed the Strait of Hormuz.

The reduction in Chinese oil imports helped soften the upward price effects for the United States, Europe, and beyond. Energy analysts credit Beijing's slashing imports as having the single greatest impact on moderating prices since the start of the war.

The war in Iran continues to pose a threat to global energy markets, with attacks by Iran-backed militias leading to Saudi Arabia temporarily shutting a vital pipeline. Oil industry experts warn that if violence escalates and keeps a chokehold on traffic, prices could reach $95 to $120 a barrel or even spikes of up to $150 a barrel.