China's Oil Stockpile Helps Keep Prices from Skyrocketing Amid Iran Conflict
When President Donald Trump launched his war against Iran in February, energy analysts predicted oil prices could more than double. But six months into the conflict, prices have remained volatile but below the worst-case projections.
Chinese President Xi Jinping's country has played a crucial role in keeping oil prices from skyrocketing. China's massive oil stockpile of 1.4 billion barrels allowed it to dramatically cut crude imports once the US and Israel began their bombardment of Iran, effectively closing the Strait of Hormuz.
The reduced demand from China helped ease global demand, softening the upward price effects for the United States, Europe, and beyond. Analysts credit Beijing's slashing imports with having the single greatest impact on moderating prices since the start of the war.
The US administration has urged Beijing to use its economic leverage to press Iran to end the conflict and reopen the Strait. However, Chinese officials have bristled at this request, citing their strong opposition to the US war.