Last night, Iran struck Saudi Arabia's US-exclusive area at the Riyadh refinery and Qatar's natural gas hub at Ras Laffan Industrial City. Crude oil prices surged another 10%, with Brent oil now rising to $116. Iran is considering charging ships passing through the Strait of Hormuz a transit fee. Iran is killing two birds with one stone: earning transit fees! Once the war stops, oil prices won't immediately drop back to pre-war levels, allowing Iran to sell oil at premium prices and rake in huge profits.

The Middle East three-country war shows no signs of stopping yet. Trump and Israeli Prime Minister Netanyahu are still taking a tough stance, and it's unlikely to end anytime soon. This will exacerbate inflation in the US and stock market declines to some extent. Global macroeconomic outlook remains grim.

However, China's situation is quite different. Our diversified energy structure and multi-channel crude oil procurement layout allow us to respond calmly even as oil prices skyrocket.