China's Exports Offset Domestic Consequences of Iran War

Changes in Imports and Energy

Concurrently, imports rose by 36 percent year-on-year, reaching a five-year high, despite crude oil imports declining to nearly a decade low. Chinese data showed that crude oil imports fell by 41.3 percent year-on-year in June, as the country's refineries restricted operations and relied on domestic reserves instead of new purchases.

Impact of the Conflict on the Economy

China's growing exports and energy self-sufficiency helped mitigate the economic impact of the war in Iran, which affected crude oil production in the Middle East and disrupted supplies to major buyers. In the Brent crude market, the global benchmark, there was a 1.4 percent increase to a monthly high of $84.49 per barrel on Tuesday, occurring two days after the largest single-day gain in six years.