Oil prices are high but could be much worse. Trump has China's Xi to thank for that

Key Points:

• Six months into the conflict initiated by President Trump against Iran, oil prices have remained volatile but have not reached the worst-case projections initially feared, partly due to China's energy strategy.
• China, under President Xi Jinping, leveraged its strategic oil reserves, the world's largest at about 1.4 billion barrels, to reduce crude imports significantly, easing global demand and helping stabilize oil prices.
• China's shift toward energy self-reliance and electric vehicles, along with its vast stockpiles, has mitigated the impact of disruptions in the Strait of Hormuz caused by Iran-backed militias and related regional tensions.
• Despite ongoing tensions, the Trump administration has been cautious in publicly addressing differences with China over Iran, as both nations prepare for high-level talks amid complex geopolitical and economic considerations.
• Energy analysts credit China's management of its oil imports and reserves as the key factor moderating global oil prices during the conflict, highlighting China's strategic foresight and contingency planning.