Oil prices have remained surprisingly stable despite ongoing conflict involving Iran, currently holding around $94 a barrel, briefly dipping below $90 following reports of a potential agreement. While a deal with Iran could further lower prices, China is playing a key, yet understated, role in maintaining market equilibrium. The country is significantly reducing its purchases on the global market and instead drawing down its strategic reserves. This move is effectively curbing demand and preventing more substantial price increases. However, analysts caution that China’s reliance on its reserves is not a sustainable long-term solution. The current situation suggests China is temporarily mitigating the impact of geopolitical instability on oil prices.