China's Oil Stockpile Shields Economy from Iran Conflict

China's massive oil stockpile has helped the country weather the volatile oil market caused by Trump's war in Iran. The stockpile, built over years and billions of dollars, allowed China to dramatically cut crude imports after the US and Israel began their bombardment.

The reduction in Chinese imports eased 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.

China's crude imports averaged just 8.1 million barrels per day in the second quarter, a 32% decrease from the first three months of the year. This allowed China to weather the storm, and analysts say Beijing's strategy is a vindication of Xi's focus on self-reliance.

The Trump administration has faced resistance when urging Beijing to use its economic leverage to press Iran to end the war and reopen the Strait of Hormuz. The leaders last met in Beijing just four months ago, but prospects for a breakthrough appear dim.