China and U.S. Oil Stockpiles Could Cushion an Iran Supply Shock

China and the United States, the world’s largest and second-largest crude oil importers, respectively, appear to have enough strategic reserves to go through an oil supply disruption in the key producing region, the Middle East, in case the U.S.-Iran standoff escalates to U.S. strikes on the Islamic Republic. Sure, any disruption to oil shipping in the Middle East would send oil prices higher from the current seven-month high of $71 per barrel Brent. The market panic in case Thursday’s U.S.-Iran talks fail could be even more disruptive…