China’s Manufacturing Heartland Tested by Iran War Energy Shock

Economic activity in China’s most important manufacturing hub is heaping pressure on power supplies, sparking an energy stress test as the Iran war chokes shipments of fuel.

A surge in power demand in a province with a population comparable to Japan and an economy the size of South Korea is colliding with rising costs for imported fuels. Average spot electricity prices have nearly doubled since the war began. The government has ordered utilities to increase coal stockpiles to counter shortages of natural gas from the Middle East, potentially foreshadowing a bigger shift in energy usage.