China's Oil Stockpile Saves the Day in Iran Conflict

The ongoing conflict in Iran has led to concerns about rising oil prices, but analysts say it could be much worse. Energy experts initially predicted that oil prices could more than double during a protracted conflict, with some forecasting prices as high as $150 per barrel.

However, thanks to China's massive oil stockpile and strategic reserve, the impact on global markets has been mitigated. Beijing's buffer of 1.4 billion barrels has allowed it to significantly reduce crude imports since the US and Israel began their bombardment of Iran.

China's actions have not only helped ease global demand but also softened the upward price effects for countries like the US, Europe, and others. Analysts credit Beijing with 'doing in 10 years what took us 25 years after the 1973 oil crisis to do: really build a kind of strategic petroleum reserve that could allow you to weather this.'

The resilience of China's oil stockpile is being tested as attacks by Iran-backed militias have led Saudi Arabia to temporarily shut a vital pipeline, and planned talks among Gulf nations focused on reopening the Strait of Hormuz have been put on hold.

President Trump is set to meet with leaders of the Gulf Cooperation Council in New York before his meeting with Chinese President Xi Jinping. The two leaders are expected to discuss the conflict in Iran, but experts say there's little chance of a breakthrough.