On one hand, there is panic all over the world due to the skyrocketing price of oil, on the other hand, China has ‘turned disaster into an opportunity’.

China Iran Oil Deal: How to create “opportunity in disaster” at a time when the threat of a global energy crisis is looming amid skyrocketing crude oil prices can be understood from China’s strategy. The increasing tension in the Middle East and the possibility of blockage of the Strait of Hormuz has increased concern around the world and there are signs of a major energy crisis. On the other hand, China is preparing to take advantage of this situation.

opportunity in disaster

According to Bloomberg report, in view of the global oil crisis, America has given partial relief in the sanctions imposed on Iran. America has given a temporary exemption of 30 days and allowed Iran to sell oil on a limited basis. After this, Chinese government oil companies are taking advantage of this opportunity and considering new agreements to purchase oil from Iran.

China’s possible oil deal with Iran is happening at a time when crude oil prices remain high due to tensions in the Middle East. After this temporary relief, a ray of hope has arisen for Asian buyers. According to media reports, Chinese refineries have started talks with Iran, although this process is still in the initial stage. At the same time, Iranian oil companies are also exploring options for their exports by contacting Asian refineries through middlemen.

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It is noteworthy that in recent years, China has been the biggest buyer of Iranian oil. In such a situation, after the relaxation of American sanctions, the number of buyers in Iran’s oil market may increase, which will also intensify competition. Due to limited supply and increasing demand, there may be a possibility of further increase in prices. However, according to experts, this possible deal will be important for China on three levels. First, to maintain price balance; Second, ensuring the security of energy supply; And third, to manage the political risks associated with it.

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