China's Crude Oil Imports Plummet 41%: Lowest Since 2016

In a stunning turn of events, China's crude oil imports plunged 41% in June, hitting their lowest monthly level since October 2016. That's 29.27 million tons, a drastic drop from the world's largest oil importer, which last year bought more than France, the UK, and Germany combined. So, what's behind this historic decline? Analysts point to a perfect storm. Beijing stockpiled crude before US-Israeli strikes on Iran began in late February, then dramatically cut purchases. Add a slowing Chinese economy and a 30% surge in coal use, and the picture becomes clear. But the biggest factor? The Strait of Hormuz remains severely restricted after the US-Iran ceasefire collapsed. The US has reimposed a blockade on Iranian ports and resumed strikes, while Iran attacks vessels from Saudi Arabia, Qatar, and the UAE. This choke point carries roughly 1/5th of the world's oil and gas, and military escalation there rattles global markets. Oil prices have risen from $69 to $79 a barrel, but analysts say the increase is still below crisis levels. Meanwhile, US gas prices actually fell 10% in June, helping curb inflation. Some experts say the market signals that the US can comfortably bomb for now. Yet China's reduced imports ...