China's Oil Stockpile Keeps Prices from Soaring Amid Iran Conflict

When President Donald Trump launched his war against Iran in late February, energy analysts issued dire warnings that oil prices could more than double during a protracted conflict. Despite ongoing volatility, these projections have yet to come to pass six months into the war.

Chinese President Xi Jinping's country has been seen as benefiting from its massive oil stockpile, which Beijing built up over years and billions of dollars in an effort to protect itself from foreign supply risks. This stockpile allowed China to dramatically cut crude imports once the US and Israel began their bombardment and Tehran effectively closed the Strait of Hormuz.

The country's oil import diet helped ease global demand, softening 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.