Yesterday, Iran struck Saudi Arabia's Ras Tanura refinery in the US-exclusive zone and Qatar's natural gas hub Ras Laffan Industrial City. Crude oil prices surged another 10%, with Brent oil now rising to $116 per barrel. Iran is considering charging transit fees to ships passing through the Strait of Hormuz. Iran is playing a two-pronged strategy: collecting transit fees! Once the war stops, oil prices won't immediately drop back to pre-war levels, allowing Iran to sell oil at premium prices and reap substantial profits.
The Middle East three-country war shows no signs of stopping yet. Trump and Israeli Prime Minister Netanyahu are currently still taking hardline stances, likely unable to stop anytime soon, which will exacerbate inflation in the US and the decline of US stocks to some extent. The global macroeconomic outlook is not optimistic.
However, China's situation is uniquely favorable. Our diversified energy structure and multi-pathway crude oil procurement layout allow China to respond calmly under surging oil prices.
Yesterday, Iran struck Saudi Arabia's Ras Tanura refinery in the US-exclusive zone and Qatar's natural gas hub Ras Laffan Industrial City. Crude oil prices surged another 10%, with Brent oil now rising to $116 per barrel. Iran is considering charging transit fees to ships passing through the Strait of Hormuz. Iran is playing a two-pronged strategy: collecting transit fees! Once the war stops, oil prices won't immediately drop back to pre-war levels, allowing Iran to sell oil at premium prices and reap substantial profits.
The Middle East three-country war shows no signs of stopping yet. Trump and Israeli Prime Minister Netanyahu are currently still taking hardline stances, likely unable to stop anytime soon, which will exacerbate inflation in the US and the decline of US stocks to some extent. The global macroeconomic outlook is not optimistic.
However, China's situation is uniquely favorable. Our diversified energy structure and multi-pathway crude oil procurement layout allow China to respond calmly under surging oil prices.