# Why oil prices aren't worse right now

> China's massive oil stockpile is quietly protecting the global economy from Trump's Iran war.
- Title: Why oil prices aren't worse right now · The Economic Times
- Summary: China's massive oil stockpile is quietly protecting the global economy from Trump's Iran war. China's strategic decision to build a 1.4 billion barrel oil…
- Keywords: oil prices, china, xi jinping, trump, iran conflict, strategic petroleum reserve, energy security, brent crude, global economy, oil imports, middle east, strait of hormuz
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/energy/oil-gas/oil-prices-are-high-but-could-be-much-worse-trump-has-chinas-xi-to-thank-for-that/articleshow/134347640.cms
- Author: AP
- Published: 2026-09-19T04:18:00+00:00
- Read time: 2 min
- Topics: oil prices, china, xi jinping, trump, iran conflict, strategic petroleum reserve, energy security, brent crude, global economy, oil imports, middle east, strait of hormuz
## War didn't trigger oil collapse
When Trump launched his Iran war in late February, analysts warned oil could more than double. Six months in, the worst predictions haven't come true, though prices remain volatile.
## China deserves the credit
Beijing spent years building the world's largest oil stockpile at 1.4 billion barrels. When the Iran war disrupted supplies, China drew from reserves instead of buying on the open market.

> The Chinese deserve credit. They did in 10 years what took us 25 years after the 1973 oil crisis to do.
## Xi's energy self-reliance plan
China made energy independence a core goal in its latest five-year plan. The country also shifted toward electric vehicles and alternative energy sources to reduce oil dependency.
## China cut imports dramatically
China's crude imports dropped from 12.1 million barrels per day in Q1 to just 8.1 million in Q2, a 32% reduction that eased global demand and softened prices worldwide.
## Global economy gets relief
By cutting imports, China reduced global oil demand, which softened upward price pressure for the United States, Europe, and beyond during the conflict.

> It's remarkable how China managed the market. They didn't panic and by turning to their inventories they kept the price down for everybody.
## Current price forecasts
Bank of America expects oil at eighty-three dollars per barrel for the second half of the year. But if violence escalates, prices could reach ninety-five to one hundred twenty dollars, with spikes up to one hundred fifty.
## Brent crude's volatile path
Brent crude averaged sixty-nine dollars last year, briefly peaked at one hundred twenty-six in late April, and now hovers around one hundred dollars per barrel.
## New threats to stability
Iran-backed militias attacked Saudi Arabia's vital Red Sea pipeline. Houthis seized strategic islands in the southern Red Sea, and planned talks to reopen the Strait of Hormuz have been postponed.
## Trump meets Gulf leaders first
Before meeting Xi, Trump will meet Tuesday with leaders of the Gulf Cooperation Council in New York, including Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, and Bahrain.
## Deep disagreements on Iran
The Trump administration has pressured China to use economic leverage against Iran, but Beijing has opposed the U.S. war and resisted threats to sanction nations doing business with Tehran.
## China's real motivation
Analysts believe Beijing built its massive oil reserve for contingency planning around a potential military takeover of Taiwan, which China considers its own territory.
## Trump downplays China concerns
Trump dismissed reports that Chinese entities supplied Iran with satellite images before an Iranian strike in July. He said both countries spy on each other and called the war a 'little excursion' lasting weeks.

> You know, when they say that China spies on us, I say you're right, and we spy on them too.
## Xi's vindication moment
Beijing views China's ability to weather the oil crisis as proof that Xi's five-year plan focused on energy self-reliance was the right strategy all along.
## Key takeaway

China's strategic decision to build a 1.4 billion barrel oil reserve and cut imports by 32% has been the single biggest factor keeping oil prices from doubling during the Iran conflict.