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Miami Herald
8 hours ago
- Business
- Miami Herald
Why Iran War Hurts China More Than America
China's energy supply from the Middle East could face severe disruptions as the Israel-Iran conflict threatens to spill over into a wider regional war. The industrial superpower's $19 trillion economy relies heavily on coal, natural gas and crude oil for manufacturing. China was the world's largest consumer of energy in 2024 and the second-largest consumer of oil behind the United States, according to the London-based Energy Institute. Israel has launched a week of airstrikes targeting sites in Iran, including facilities central to Tehran's nuclear program, but its energy export infrastructure has so far been spared. That could change as the war intensifies, and fears are growing that Iranian political leaders could respond to any U.S. military intervention by blockading the strategic Strait of Hormuz. Officially, China imported no oil from Iran last year. However, energy researchers say Iranian oil delivered via unofficial channels, such as transshipment, largely end up in the country's smaller independent refineries. The U.S. has sanctioned Chinese entities that allegedly assist in Iran's secret oil trade in defiance of Western restrictions. Over 90 percent of Iran's sanctioned-and therefore cheaper-crude oil exports go to China, including via transshipment points such as Malaysia, said commodities analysts at Kpler. But Chinese energy imports are further exposed in or near the Persian Gulf, where six of its top 10 oil suppliers are found in official government statistics. While Beijing's top oil supplier in 2024 was neighboring Russia, shipments from Saudi Arabia, Iraq, Oman, the United Arab Emirates, Kuwait and Qatar together accounted for over half of China's oil imports, according to Newsweek's analysis of available customs data. The U.S. bought the bulk of its crude oil from Canada. Saudi Arabia and Iraq were among its top 10 suppliers but only accounted for around 8 percent of its imports. Energy markets are jittery. U.S. President Donald Trump's call for Iran's "unconditioned surrender" sent up oil prices this week, but global costs would spike if Tehran follows through on its threat to close the Strait of Hormuz, which links the Persian Gulf to the Gulf of Oman and the wider Indian Ocean region. The U.S. Energy Information Administration estimates that up to 20 million barrels of crude oil each day flow through the waterway, which is just 21 miles wide at its narrowest point. Oil prices are still on the rise as the Israel-Iran missile war enters its seventh day. West Texas Intermediate crude, a U.S. price measurement, topped $76 per barrel, a five-month high. The international standard Brent crude reached $77 per barrel, a four-month high. A major conflict that cuts off supply lines from the region could result in a global economic shock that sends oil above $100 per barrel. Prices last reached that point in March 2022, after Russia's invasion of Ukraine. Officials in Beijing appear to be planning for the worst. China has been building up crude oil stockpiles by refining less than it buys and produces itself, according to Reuters. What's more, disruptions in the Middle East could directly benefit Russia, among the world's top energy exporters. China's Foreign Ministry did not immediately respond to a written request for comment after hours. Howard J. Shatz, a senior economist at the RAND Corporation, said in analysis published by the think tank this week: "Oil prices jumped with the start of Israel's action against Iran, suggesting that oil markets see increased risk, but it is too soon to reach a concrete judgment on global economic consequences. "There will be two specific factors to watch to make a better judgment as to global economic consequences: first, whether Iran attacks Gulf Arab oil infrastructure, and second, whether passage through the Strait of Hormuz is blocked. If either or both happen, energy prices are likely to rise much further, raising the risk of a global recession. If neither happens, there will be heightened risk, but more modest energy price increases to which the world can probably adjust, although with a modest drag on growth." World leaders have moved to inject calm in the Middle East, the latest being Chinese President Xi Jinping and Russian counterpart Vladimir Putin, who in a call on Thursday condemned Israel for escalating tensions by striking Iran. "If the conflict escalates further, not only will the conflicting parties suffer greater losses, but regional countries will also suffer greatly," Xi said, according to China's official Xinhua news agency. "The parties to the conflict, especially Israel, should cease fire as soon as possible to prevent the situation from escalating in turn and resolutely avoid the spillover of war," he added. Related Articles Video of Theo Von Sounding Alarm on Possible War With Iran Takes Off OnlineSatellite Images Show Iran's Buried Nuclear Sites That Trump Could StrikeRussia's Alliance With Iran Explained Following Nuclear WarningPutin is Close to Losing His Grip on the Middle East 2025 NEWSWEEK DIGITAL LLC.
Newsweek
13 hours ago
- Business
- Newsweek
Why Iran War Hurts China More Than America
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. China's energy supply from the Middle East could face severe disruptions as the Israel-Iran conflict threatens to spill over into a wider regional war. The industrial superpower's $19 trillion economy relies heavily on coal, natural gas and crude oil for manufacturing. China was the world's largest consumer of energy in 2024 and the second-largest consumer of oil behind the United States, according to the London-based Energy Institute. Why It Matters Israel has launched a week of airstrikes targeting sites in Iran, including facilities central to Tehran's nuclear program, but its energy export infrastructure has so far been spared. That could change as the war intensifies, and fears are growing that Iranian political leaders could respond to any U.S. military intervention by blockading the strategic Strait of Hormuz. Officially, China imported no oil from Iran last year. However, energy researchers say Iranian oil delivered via unofficial channels, such as transshipment, largely end up in the country's smaller independent refineries. The U.S. has in the past sanctioned Chinese entities that allegedly assist in Iran's secret oil trade in defiance of Western restrictions. Over 90 percent of Iran's sanctioned—and therefore cheaper—crude oil exports go to China, mostly via transshipment points such as Malaysia, said commodities analysts at Kpler. But Chinese energy imports are further exposed in or near the Persian Gulf, where six of its top 10 oil suppliers are found according to official data. What To Know While Beijing's top oil supplier in 2024 was neighboring Russia, shipments from Saudi Arabia, Iraq, Oman, the United Arab Emirates, Kuwait and Qatar together accounted for over half of China's oil imports, according to Newsweek's analysis of available customs data. The U.S. bought the bulk of its crude oil from Canada. Saudi Arabia and Iraq were among its top 10 suppliers but only accounted for around 8 percent of its imports. Energy markets are jittery. U.S. President Donald Trump's call for Iran's "unconditioned surrender" sent up oil prices this week, but global costs would spike if Tehran follows through on its threat to close the Strait of Hormuz, which links the Persian Gulf to the Gulf of Oman and the wider Indian Ocean region. The U.S. Energy Information Administration estimates that up to 20 million barrels of crude oil each day flow through the waterway, which is just 21 miles wide at its narrowest point. Oil prices are still on the rise as the Israel-Iran missile war enters its seventh day. West Texas Intermediate crude, a U.S. price measurement, topped $76 per barrel, a five-month high. The international standard Brent crude reached $77 per barrel, a four-month high. A major conflict that cuts off supply lines from the region could result in a global economic shock that sends oil above $100 per barrel. Prices last reached that point after in March 2022, after Russia's invasion of Ukraine. Officials in Beijing appear to be planning for the worst. China has been building up crude oil stockpiles by refining less than it buys and produces itself, according to Reuters. What's more, disruptions in the Middle East could directly benefit Russia, among the world's top energy exporters. China's Foreign Ministry did not immediately respond to a written request for comment after hours. What People Are Saying Howard J. Shatz, a senior economist at the RAND Corporation, said in analysis published by the think tank this week: "Oil prices jumped with the start of Israel's action against Iran, suggesting that oil markets see increased risk, but it is too soon to reach a concrete judgment on global economic consequences. "There will be two specific factors to watch to make a better judgment as to global economic consequences: first, whether Iran attacks Gulf Arab oil infrastructure, and second, whether passage through the Strait of Hormuz is blocked. If either or both happen, energy prices are likely to rise much further, raising the risk of a global recession. If neither happens, there will be heightened risk, but more modest energy price increases to which the world can probably adjust, although with a modest drag on growth." Smoke billows after an Iranian missile struck an oil refinery in Haifa in northern Israel on June 16, 2025. Smoke billows after an Iranian missile struck an oil refinery in Haifa in northern Israel on June 16, 2025. Ariel Schalit/AP What Happens Next World leaders have moved to inject calm in the Middle East, the latest being Chinese President Xi Jinping and Russian counterpart Vladimir Putin, who in a call on Thursday condemned Israel for escalating tensions by striking Iran. "If the conflict escalates further, not only will the conflicting parties suffer greater losses, but regional countries will also suffer greatly," Xi said, according to China's official Xinhua news agency. "The parties to the conflict, especially Israel, should cease fire as soon as possible to prevent the situation from escalating in turn and resolutely avoid the spillover of war," he added.
Express Tribune
12-06-2025
- Business
- Express Tribune
'Over $100b needed for carbon-neutral energy sector'
Listen to article Pakistan is transitioning away from fossil fuels at a faster pace than many regional economies, with plans to generate 60% of its energy from renewable sources by 2030 to meet its emissions reduction targets. According to global data compiled by the Energy Institute, the share of fossil fuels in Pakistan's total energy consumption declined by 4.8 percentage points from 86.7% in 2019 to 81.9% in 2023. In comparison, the average decline in fossil fuel usage among low- and middle-income countries during the same period was just 0.8 percentage points (from 90.8% to 90.0%). Further, recent data released by the National Electric Power Regulatory Authority (NEPRA) reveals that clean energy sources, such as hydropower, nuclear, and other renewables, contributed approximately 54% to the country's energy mix last month. The government's move away from furnace oil, the most expensive source of power, is evident, as it accounted for only 1% of the energy mix in April. These figures show that, despite macroeconomic challenges, Pakistan currently holds a relatively cleaner energy mix compared to other Asian and low- and middle-income countries. Neighbouring countries like China and India generate approximately 61% and 75% of their electricity from coal, respectively. In contrast, Thar coal contributes only 13% to Pakistan's energy mix and has played a key role in ensuring grid reliability and affordability. "The energy baseload of Pakistan should be based on indigenous sources of Thar along with renewables to ensure affordability and mitigate geopolitical shocks. Developing economies, including Pakistan, require a balanced transition to renewable energy. Fossil fuels are crucial for short- to medium-term energy stability," said Asif Arslan Soomro, an independent economic and investment analyst. He added that balancing environmental goals with economic stability is crucial, as an abrupt shift from fossil fuels could disrupt growth and strain an already fragile economy. The energy transition will involve enhancing or transforming the entire energy system, and this significant investment relates to the development and upgradation of infrastructure, such as hydropower plants and transmission systems, as well as the phase-out of existing fossil fuel-based power plants. Pakistan requires over $100 billion in investment to transition to a carbon-neutral energy sector, with $50 billion needed to achieve its 60% renewable energy target by 2030, according to the climate ministry. Soomro noted that Pakistan has been ranked as the most vulnerable country to climate change in the Climate Risk Index (CRI) 2025 report, despite contributing less than 1% to global greenhouse gas emissions. "Even though its climate impact remains negligible, Pakistan has committed to unconditionally reduce its overall projected emissions by 15% by 2030. We have also committed to reduce emissions by a further 35%, conditional on the availability of required external financing," he added.
ABC News
13-05-2025
- Automotive
- ABC News
EV chargers on power poles could be a game changer. But who will control them?
Public EV chargers could soon be everywhere as power poles get a new purpose. ( ABC News ) With thousands of power poles all around, the potential to turn them into electric vehicle chargers is limitless. When the power pole right outside Dani Alexander's terrace house was converted into an electric vehicle charging station, she fast-tracked her timeline for buying a new car. Alexander's house in Sydney's inner west is on a busy street with no off-street parking and therefore no ability to install a home charger. "The access [to chargers] or lack thereof really left us with some concerns," Alexander says. "Once we found out that there was going to be some in the neighbourhood and then finally just outside our house, we looked into it a lot more seriously." With no off-street parking, an EV charger in front of her house was just what Dani Alexander needed. ( ABC News: Jess Davis ) As an energy expert and heading UNSW's Energy Institute, she is conscious of electrifying and already has a solar system installed on her house. Moving to an EV was the logical next step, and a couple of months after the public charger went up, her family bit the bullet and bought an EV. In Sydney's Inner West council area, 67 per cent of homes have no off-street parking compared with around 30 per cent statewide. A lack of public charging infrastructure remains a key barrier for many when deciding whether or not to make the leap to an electric car. Pilot programs have begun rolling out kerbside chargers like the one outside Alexander's house, but they are still in their infancy. And it's not without its controversies, parking politics for one — with some designated parking for EVs only. Who gets to own the infrastructure is another — with the large distribution networks vying to be the big players in this rollout. So could power poles be part of the answer to the transition to electric vehicles? How do kerbside chargers work? Power poles are everywhere and provide a ready supply of electricity. With an EV charger attached, you can pull up to go shopping, visit a friend, or go to work and conveniently charge your car while you're out. These chargers are designed to work like a home charger would, which means they're not fast, but also not the slowest. There are different kinds of EV chargers, and charging infrastructure is improving all the time. This year, BYD showcased the fastest charger in the world. Charging times are based on average rates and can vary depending on how efficient the electric vehicle is. BYD charge time is sourced directly from BYD. ( EV Council/ABC News ) Most EVs should be able to use these kerbside chargers, with charging infrastructure now fairly universal. The only catch is it's BYO charging cable. There are a few different designs. Some have two charge points so that cars on either side of the power pole can plug in. While others have just a single charger. You pay by using an app, with charges ranging from 38 cents a kWh to 50 cents — on average around $12 for a full charge. An app and a charging cable are all Dani Alexander needs to top up her battery. ( Supplied: Dani Alexander ) As cars, trucks and buses move away from petrol and diesel towards electric, a network of accessible public chargers will be essential, and who controls that infrastructure remains up for grabs. Imagine owning all the petrol stations across the country. Home-grown innovation One of the companies building and installing power pole chargers is EVX, a Sydney-based startup. They have around 100 charging locations, equating to 200 chargers spread between metropolitan Sydney and the NSW mid-north coast. Sydney-based start up EVX has jumped on the idea to tap power poles. ( ABC News: Jess Davis ) Charging kerbside is as easy and convenient as charging at home, EVX says. ( ABC News: Jess Davis ) There are 200 chargers already plugged into power poles. ( ABC News: Jess Davis ) Kerbside chargers are an ideal way to top up the battery for inner-city commutes. ( ABC News: Jess Davis ) "What we're trying to do is emulate the at-home charging experience for people … both from a cost but also from a convenience point of view," EVX CEO Andrew Forster says. "People who can't charge at home … can have access to convenience charging in places where the car would have been parked anyway." Andrew Forster says kerbside charging makes EVs accessible for people without off-street parking. ( ABC News: Jess Davis ) For most inner-city drivers, they'll only need to plug in and charge up around once a week, according to Forster. "The simplest way to explain it is that, over the course of an hour, depending on the car, you're going to get somewhere between 50 and 120km of charge on a unit like this. "When you think about your average daily commute and the capacity of most EVs, you're going to be doing it once a week." EVX has been backed by the federal government's Australian Renewable Energy Agency (ARENA) with a $2.4 million grant to install 250 chargers across Victoria, South Australia and New South Wales. The company has also benefited from grants from the New South Wales government, which is co-funding 500 kerbside chargers through multiple providers. Big networks step in Alongside small startups like EVX, big players are looking to be a part of the kerbside charging rollout. The companies that own the poles and wires, known as Distribution Network Service Providers (DNSPs), believe that if regulations change, they could roll power pole chargers out quickly and at scale. Leading the charge is Sydney's distribution network, Ausgrid. Ausgrid is alos running a pilot program. ( ABC News: Jess Davis ) The distribution company wants to roll out chargers at scale. ( ABC News: Jess Davis ) Ausgrid's Nick Black, demonstrates how kerbside charging points work. ( ABC News: Jess Davis ) Already connected to the grid, power poles are an obvious location for public chargers. ( ABC News: Jess Davis ) "What we're trying to do is extend the regulation to allow us to own and maintain the hardware just as we own and maintain the power poles and the wires that go to it," Ausgrid's head of electric vehicle charging and infrastructure Nick Black says. The regulations currently limit the networks to maintaining the energy network's physical infrastructure and prevent them from providing services. For now, Ausgrid has begun with a pilot program through their commercial arm, PlusES, with plans to install 1,000 kerbside chargers. But Black says it's too slow. Nick Black says regulation needs to change to accelerate the uptake of EVs. ( ABC News: Jess Davis ) "PlusES has been successful in some government funding that's allowed these chargers to be rolled out, but the scale is not large enough," Black says. "We really need a step change and the smaller rollouts while we're testing and learning from this … more needs to be done if we really want to accelerate the uptake of EVs, increase the adoption of EVs, we need more of these charges and we need a scaled approach to that." Who's going to pay for them? Energy Networks Australia represents theDNSPs and is lobbying for the regulations to change to classify EV charging infrastructure as a "distribution service". But if the distribution networks were to be in charge of kerbside chargers, there's the question of who pays? Consumers pay for the upkeep of the energy network through a network service charge on their energy bills. Power consumers pay for the upkeep of the poles and wires networks. ( ABC News: Jess Davis ) Energy Networks Australia CEO Dom van den Berg says who pays for the chargers needs to be fair. ( ABC News: Jess Davis ) CEO of Energy Networks Australia Dom van den Berg says the cost of maintaining EV chargers wouldn't necessarily be put onto all energy users. "There are many ways to fund it, and that's almost the next order," van den Berg says. "That could be through government kick-starter funding … it could be through user pays, or it could be through all customers paying to recognise that we need more EVs, and this is going to be good for all Australians." In Victoria, the networks have made an application to the Australian Energy Regulator (AER) for a trial that would allow them to install and maintain kerbside chargers. It's the first application the AER has received from a DNSP to change the rules for EV charging, with the regulator opening it up for public consultation. The New South Wales government is also considering proposals from Ausgrid and other DNSPs on how best to improve EV charging infrastructure. Pitfalls ahead Electrification expert and co-founder of Rewiring Australia Dan Cass says kerbside chargers will be a vital part of the transition to renewable energy, but there are some pitfalls ahead. "We need to be pretty careful if we're opening up now another huge market, which is the transport energy market," Cass says. "Adding that to an electricity market that's already really not working for the consumer, we have to make sure we're not repeating the mistakes of the past." Cass says there is a case for rolling out kerbside chargers at scale, but there also needs to be consideration of equity and competition. Rewiring Australia co-founder Dan Cass cautions about the huge market that kerbside charging opens up. ( ABC News: Jess Davis ) "How can we maximise competition while still delivering this fast and fair, and we think probably there should be contestability for the installation of all of this infrastructure," he says. "If the networks can make a case that they'll do it faster and cheaper than anyone else, they should have to demonstrate that rigorously." If the networks do a bad job, consumers will end up copping the bill. "It is a monopoly and consumers can't opt out," Cass says. "If it's done inefficiently or expensively or slowly, the consumer has no recourse to move their car to a different area. "We need to think very carefully before handing out a potentially very large cheque to existing monopolies." What about parking? For Dani Alexander and her neighbours, getting a park outside their front door can be a difficult task and the introduction of EV-only parking taking up two vital spots was met with some consternation. Since buying an EV, Alexander says she's been able to get the "superstar car park all the time", though it does come with a level of guilt attached. Not all kerbside chargers have designated parking, which means a normal car can still park there. Dani Alexander's suburb in Sydney's inner west has introduced special car parking spots for EV charging. ( ABC News: Jess Davis ) That leads to the chargers being "ICED out", a term that means an internal combustion engine car is taking up the space. "I think when you look at non-designated parking, there is only one benefit ultimately, and that is a political benefit for councils because it is the path of least resistance," EVX's Forster says. "If we genuinely want to drive uptake of EVs, people need to see infrastructure that is available that they can also access. "I think token deployment of stuff that perhaps might be difficult to access for people, non-designated parking, and really relying on the goodwill of people to not park in front of those pieces of infrastructure is not a sustainable way to get past the early adoption stage and into the mass market stage." Forster says there's been a noticeable difference in usage of EVX chargers before and after the designated parking signs have gone in. Non-Evs can sometimes take up charging spaces for EVs. ( ABC News: Jess Davis ) "What we're seeing is a really stark difference between the levels of utilisation in the order of 10 times as much usage on spots that are designated," Forster says. And he believes the EV charging parking spots will be less controversial if people see that they're being used. "Community acceptance is there because they don't see it as wasted or stolen parking spaces or facilities that have been taken away from them." But Ausgrid's Nick Black disagrees, with their model looking at only 30 per cent dedicated parking and 70 per cent non-dedicated. "We could roll a much higher density [of chargers] down the street and therefore you wouldn't need the dedicated parking," Black says. That reflects the idea that there would be more chargers installed on a street to allow for some parking spots being ICED out. Balancing the grid As well as driving the transition to electric vehicle uptake, increasing the availability of kerbside chargers can give people more opportunities to charge their cars during the day when there's an abundance of solar power going into the grid. "Imagine if you could park your car in the community doing whatever you normally need to do, visiting the doctor, picking up your mum, doing some shopping, going to the gym," Dan Cass says. "If you could plug your car in then and soak up that excess solar, you're helping the grid." Dani Alexander also sees the potential of power pole chargers to balance the grid and put downward pressure on electricity prices, if it's done right. "I think there are fantastic opportunities for EVs to be able to particularly soak up surplus solar that we're not using, to actually lower the cost of energy for everyone," she says. "For example, we have a 3.8kW [solar] system on our roof. I go to work, my husband goes to work. We are generating power, and it would be fantastic if that could go into these EVs that are charging in the middle of the day." Unfortunately, Dani Alexander pays a lot more for power to charge her EV than she gets back for the solar power she feeds into the grid. ( Supplied: Dani Alexander ) In a way, Dani Alexander's situation is a good example of the downfalls and opportunities of the energy transition. At the moment, she is paying 10 times as much for charging her EV outside her house as what she earns from feeding the energy back into the grid. "We would really love to see if there was a way to reflect our home energy usage, and generation, in the deal that we were getting from that public infrastructure," she says. As an energy expert, Alexander believes that any public infrastructure needs to ensure everyone can benefit from the distributed power network.
Reuters
10-04-2025
- Business
- Reuters
China trade spat undermines Trump's ‘max pressure' Iran campaign: Bousso
LONDON, April 10 - The deepening trade war between the United States and China could significantly undermine President Donald Trump's "maximum pressure" campaign against Iran, which earns tens of billions of dollars in revenue annually from oil sales to Beijing. Since taking office in January, Trump has ratcheted up pressure on Iran in a bid to stop it from obtaining a nuclear weapon, an ambition it denies harbouring. Washington has sought to drive Tehran's oil exports down to zero, cutting off a major source of revenue for the Islamic Republic. That's a tall order. The United States and the European Union have for years targeted Iran's oil exports with limited success. The OPEC member's oil production rose to 4.6 million barrels per day in 2023, the highest since 2018, according to the Energy Institute's Statistical Review of World Energy, opens new tab. But Trump is clearly willing to up the ante. He recently threatened to bomb Iran and impose secondary tariffs on buyers of its oil if Tehran does not agree to a nuclear deal. The U.S. administration also issued a string of sanctions against Chinese entities involved in crude trading and, for the first time, targeted Chinese "teapot" refineries – small, independent plants – that process Iranian crude. Beijing accounted for at least 77% of Iran's roughly 1.6 million bpd of exported crude in 2024, according to analytics firm Kpler. The value of Iran's crude sales to China is not officially disclosed, but a Reuters calculation puts the trade at nearly $29 billion last year, assuming a 20% discount to the Brent crude prices to include costs of logistics. Washington thus clearly understands that any effort to choke off Iran's oil exports will have to involve persuading, or coercing, China to halt the oil trade. But doing this will be much more challenging now, given the rapid deterioration in relations between the two trading partners. They have exchanged tit-for-tat tariffs over the past few weeks, culminating in Trump's announcement on Wednesday that he would raise tariffs on Beijing to an eye-popping 125%, dwarfing China's newly announced 84% tariff on U.S. goods. So what could Trump try to do? While China officially does not import any crude oil from Iran, its independent teapot refineries have for years circumvented international sanctions on Iranian oil exports and shipping using an opaque web of shell companies and tankers. So, in theory, more of these small refineries could be targeted. But as the recent U.S. sanctions on Shandong Shouguang Luqing Petrochemical Co., Ltd have shown, such actions are likely to have a limited impact since many of these China-based plants' operations are domestic. Secondary sanctions on Iranian crude are also unlikely to faze China, considering the extraordinarily high tariff barriers Trump has already erected. Once a country is facing tariffs exceeding 100%, the threat of additional penalties has little bite. If Washington is incapable of limiting Iran's oil revenue by a meaningful amount, then it is fair to assume that the key lever in Trump's "maximum pressure" campaign won't be financial. That doesn't necessarily mean Trump will pursue a military conflict with the Islamic Republic, though the administration has taken several actions – including moving six B-2 heavy bombers to the Indian Ocean – which appear designed to signal that the threat is real. But the Republican president this week also made a surprise announcement that the United States and Iran were poised to begin direct talks. Iran's foreign minister later said the discussions in Oman would be indirect. Either way, tensions between Washington and Tehran continue to rise, and this could ultimately give Chinese President Xi Jinping leverage in his own battle with Trump. He could use Iran's dependence on China as a bargaining chip in any future negotiations with the U.S. about defusing their trade tussle, as it is unlikely that Trump would want to pursue a trade war and an actual war simultaneously. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here.
