China's Oil Stockpile Helps Temper Global Prices Amid Iran Conflict

US President Donald Trump's war against Iran has caused oil prices to remain high but not as high as initially feared. Chinese President Xi Jinping's visit to Washington next week may touch on the issue, with analysts crediting China for helping keep a lid on global oil prices.

China has stockpiled over 1.4 billion barrels of oil in its strategic reserve, which allowed it to reduce crude imports and ease global demand. This move helped soften the upward price effects for the US, Europe, and other nations.

Rosemary Kelanic, director of the Middle East program at Defense Priorities, said China's actions were 'a weird kind of free-riding' on Trump's efforts to keep a fragile trade truce with Beijing intact. The Chinese government has been focused on energy self-reliance as part of its five-year plan.

However, analysts warn that the situation remains tenuous, and prices could still reach $95 to $120 per barrel if violence escalates or major energy infrastructure is damaged. Trump's Republican Party faces pressure from voters over high gasoline prices, making his meeting with Xi all the more crucial.