China Emerges as Winner from Latest Oil Price Crisis

The recent oil price crisis has created a new winner in the global market: China. According to an analysis of global oil markets, China's actions have reduced crude oil prices by over $30 per barrel, pushing them down to levels that limited economic pain for Western countries.

Washington's sanctions against Iran, announced on August 20, aim to isolate Tehran financially and cripple its economy by cutting off all domestic and international sources of revenue. The US Treasury Department has blacklisted five key sectors of the Iranian economy, including digital assets and cryptocurrencies, technology, gold, aviation and shipping.

China's leverage against the US sanctions lies in its control over rare earth processing capacity, with around 85% of the world's supply being controlled by China. The country also possesses broader sources of leverage that allow it to approach Washington's new sanctions initiative with interest.