Trump's War Against Iran: How China's Oil Stockpiles Helped Keep Prices Down

When President Donald Trump launched his war against Iran in February, energy analysts predicted oil prices could double during a protracted conflict. However, six months into the ongoing war, global oil prices remain volatile but haven't reached their most dire projections.

Chinese President Xi Jinping's country has played a crucial role in keeping oil prices from skyrocketing, thanks to its massive oil stockpile. Beijing spent billions of dollars amassing the world's largest oil reserve, which now stands at about 1.4 billion barrels.

China's strategic reserve allowed it to cut crude imports once the US and Israel began their bombardment, effectively closing the Strait of Hormuz. This reduction in demand helped ease global prices for the US, Europe, and other countries.

Analysts credit Beijing's stockpile with moderating oil prices during the conflict, particularly since China is the world's second-largest oil consumer and Iran's top buyer. While experts believe Beijing was driven by contingency planning for a potential military takeover of Taiwan, they also acknowledge that seeing global oil prices skyrocket wasn't ideal.