China's Oil Stockpile Saves the Day in Iran Conflict

When President Donald Trump launched his war against Iran in late February, energy analysts predicted oil prices could more than double during a protracted conflict. However, six months into the war, oil prices have remained volatile but not as high as initially feared.

According to some experts, China's President Xi Jinping has played a significant role in keeping oil prices under control. By drawing from its massive stockpile of 1.4 billion barrels, China was able to dramatically cut crude imports and ease global demand, softening the upward price effects for the United States, Europe, and beyond.

China's actions have helped mitigate the impact of the conflict on oil prices, which are currently hovering around $100 per barrel. While some analysts predict prices could reach $95 to $120 a barrel if violence escalates, others believe damage to major energy infrastructure could produce spikes of up to $150 a barrel.

While China's actions have been credited with keeping oil prices from hitting the worst-case levels, it's unclear how much the two leaders will discuss Iran during Xi's upcoming state visit to Washington. The war in Iran and its impact on the global economy is expected to be on the agenda for the Trump-Xi talks.