China's massive oil reserves and reduced imports have helped moderate the price impact of the war against Iran, even as crude markets remain volatile and the conflict continues without an end in sight. Beijing had accumulated about 1.4 billion barrels in strategic reserves by the end of last year and made energy self-reliance part of its latest five-year plan. After the U.S. and Israel began bombardment and Iran effectively closed the Strait of Hormuz, China—both the world's second-biggest oil consumer and Iran's top buyer—cut crude imports sharply, drawing on inventories and relying more on electric vehicles and alternative energy. Imports averaged 8.1 million barrels per day in the second quarter, down nearly 4 million barrels per day, or 32%, from the first quarter. Analysts say the reduction in Chinese demand has had the greatest effect in keeping prices below the most severe forecasts, although new attacks on energy and shipping infrastructure are testing that buffer. Bank of America analysts forecast oil at $83 a barrel in the second half of the year, while warning that prolonged disruption could push prices to $95-$120 and damage to major infrastructure could produce spikes as high as $150. Brent crude averaged about $69 per barrel last year, is currently around $100 and briefly reached $126 in late April. The war and its economic effects are expected to feature in President Donald Trump's talks with Chinese President Xi Jinping, though analysts see little prospect of a breakthrough on reopening the strait or ending the conflict.