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Will Oil Prices Soar as the U.S.-Iran Truce Frays? The Answer Lies With China.
The New York Times • • business
Key Points:
- The passage of oil tankers through the Strait of Hormuz has been significantly slowed due to ongoing hostility between the United States and Iran.
- Oil prices are influenced not only by the flow of oil from the Persian Gulf but also by China's purchasing decisions.
- China, the world’s largest oil importer, sharply reduced its oil purchases this spring, which helped prevent oil prices from rising further amid the conflict.
- Market uncertainty centers on when China will increase its oil demand again, as a delay in buying would likely keep prices low, while renewed demand could push prices higher.
