China’s oil reserves have slowed the price surge, but that may be ending

China has helped restrain the oil-price surge as a major buffer in the market, but that stabilizing role may now be becoming less certain. Oil prices have continued their climb since the beginning of September after attacks over the weekend.

The United States attacked Iranian oil tankers near Kharg Island in an effort to prevent Iranian oil exports and cut off important foreign revenue flows. The fighting is also weighing on Europe’s economy, the article says.

Iran responded by planning a new exclusion zone next to the Strait of Hormuz. Ships entering the zone are to be placed on a sanctions list by the Iranian regime. The effect on shipping is already visible: over the past 10 days, an average of only 10 vessels a day passed through the strait.

With the route disrupted and China’s role as a market buffer potentially weakening, the article warns that oil prices could reach new highs.