With missiles flying over Tehran, Trump has moved beyond tariffs and into energy leverage, targeting Venezuela and Iran— the primary sources of heavily discounted, sanctioned crude flowing to China.
China has been the biggest buyer of oil from Venezuela and Iran – at a price that has radically changed in 2026. (Source: Kpler)
Nearly 90% of Iran’s exports and roughly half of Venezuela’s oil had been making its way to Chinese buyers, much of it feeding independent refineries and price-sensitive manufacturing supply chains.
By disrupting those barrels, the Trump administration is tightening Beijing’s access to cheap energy and forcing it back into higher-priced global markets where transactions move through dollar-clearing systems and U.S.-aligned producers.
The strategy does not just squeeze supply; it raises China’s input costs and narrows its strategic autonomy.
In the age of AI, control of global energy routes shapes the balance of power even more than at any time in history. And it’s still a matter of geography.
For now.
~ Addison
P.S. Grey Swan Live! returns to its regular time this week, 2 p.m. ET on Thursday.
John Robb, author of Brave New War and Grey Swan Investment Fraternity contributor, joins us for a discussion on the war with Iran, how it’s being fought, and what it means for the dollar and other assets. It will also be an opportunity to further delve into how these moves impact countries such as China.
With market volatility on the rise and a new set of global challenges arising from this conflict, you won’t want to miss out on this week’s Grey Swan Live!
Robb’s expertise on network warfare is central to understanding the Trump strategy for disrupting operations by killing 40 top Iranian leaders. In a globally connected tech economy in the 21st century, the strategies and weapons of warfare are evolving rapidly.
