How China and U.S. Eased Middle East Oil Shock and Stabilized Prices

China and the United States have played pivotal roles in mitigating the impact of a historic oil supply disruption caused by Iran's blockade of the Strait of Hormuz. According to the International Energy Agency, the blockade removed approximately 10 million barrels per day from the market, representing about 10% of global consumption. Despite this massive shock, crude prices remained below $120 per barrel, largely due to coordinated adjustments by the world's two largest economies. The U.S., as the top producer, surged exports by 3.5 million barrels per day, while China, the largest importer, reduced its intake by 3.6 million barrels per day. These actions collectively offset roughly 70% of the lost Gulf exports. The stabilization efforts coincided with a high-level summit in Beijing between President Donald Trump and President Xi Jinping, where leaders agreed on the necessity of reopening the strait for energy flow. Analysts note that without these significant market interventions, prices would likely have spiked much higher, surpassing levels seen during previous geopolitical crises.