Iran war shows China role in setting the price of oil

When the U.S. and Israel launched strikes on Iran, the closure of the Strait of Hormuz threatened to send global oil prices soaring. But according to Axios, one country's energy strategy did more than any other to moderate that shock: China, the world's largest oil buyer, drastically cut its purchases from global markets. Chinese crude imports dropped over forty percent below the previous year's level—a withdrawal that surprised analysts, especially that China sustained it without crippling its economy. Chinese officials tapped domestic reserves and shifted to coal and renewables, while the country's enormous fleet of electric vehicles further dampened oil demand. The result: reduced global prices that benefited economies worldwide, even though China's policymakers were focused entirely on their own domestic needs. Experts now describe China as the "major swing demand setter" in global oil markets, a power that becomes more visible every time a crisis hits.

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