Why A Clash Between The U.S. And Iran Would Be Disastrous For China

Panos Mourdoukoutas, Forbes: A Clash Between US And Iran Could Send Oil Prices Above $100 And Bad News For China

China’s next big problem won’t be in the South China Sea. It will be in the Strait of Hormuz.

That’s where both Washington and Teheran want to enforce their own freedom of navigation.

This prospect moves the US and Iran closer to a direct military confrontation. If that turns out to be the case, it will disrupt Middle East oil supplies and push crude oil prices above $100 level.

That could be bad news for China – because the Middle East supplies close to 50% of China’s oil imports.

It could be good news for American frackers, who will have to pump oil as fast as they can to make up any supply shortfall to America’s allies.

It could be good for Russia, which will have to sell more oil to its own allies, including China.

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WNU editor: Oil has always been China's Achilles Heel, and if there is one thing that will put a screeching stop to China's economy it will be $100+ for a barrel of oil.