According to a Reuters report, China is preparing for the possibility of the Iranian regime's collapse and is redirecting its investments away from Iranian oil toward raw gold.
This strategic shift comes as gold ounce prices shatter records, driven by unprecedented Chinese purchases of gold amounting to hundreds of billions of dollars.
Analysts suggest this move bolsters assessments that a U.S. strike on Iran is closer than ever.
China's heavy reliance on Iranian oil has been a key concern, with imports averaging 1.38 million barrels per day in 2025, representing about 12% of its total oil imports.
In 2021, Beijing pledged $400 billion in investments over 25 years, including a $280 billion Caucasus-Iran-Pakistan oil pipeline.
Recent disruptions, such as U.S. actions in Venezuela, have prompted Chinese refiners to increasingly turn to Iranian crude as a replacement.
Gold prices have surged, with the metal touching a record high of $4,641.40 per ounce amid safe-haven demand tied to geopolitical risks, including U.S.-Iran tensions.
This follows a pattern where China has benefited from discounted Iranian oil but is now facing potential supply risks due to sanctions and regional instability.
The upheaval in Iran is expected to be challenging for Beijing, impacting its energy diversification efforts.
No official confirmation from Chinese authorities has been issued regarding the investment shift.
