Iran War and China's Energy Crisis
Friday, 2026/03/20169 words3 minutes833 reads
The Iran war has created a serious global energy crisis. Iran has threatened to attack vessels passing through the Strait of Hormuz, a critical shipping route. About 20 million barrels of oil pass through this strait daily, representing a fifth of the world's oil supply.
China, the world's largest oil buyer, consumes 15 to 16 million barrels daily. While Gulf countries like Saudi Arabia and Iran are important suppliers, China has prepared for such disruptions. Russia provides nearly a fifth of China's oil imports, making it Beijing's biggest supplier. Additionally, China relies heavily on coal for electricity, which is produced domestically.
Beijing has built substantial oil reserves of around 900 million barrels, providing nearly three months of buffer. The country has also invested heavily in renewable energy. Wind, nuclear, solar, and hydropower now generate over a third of China's electricity. Electric vehicles account for at least a third of new car sales, reducing dependence on oil. These strategic decisions help China withstand the current crisis better than its neighbors.
