Iran sends millions of barrels to China through Strait of Hormuz even as war chokes the waterway - CNBC

China continues to receive Iranian oil shipments through the Strait of Hormuz despite the ongoing U.S.-Israeli military campaign against Tehran, which has severely disrupted global energy trade. The strait, a critical energy artery handling 20% of global oil and liquefied natural gas (LNG) supplies, remains partially operational, with Chinese and Iranian-owned vessels navigating the contested waters under heightened security measures. Ship tracking data indicates that approximately 300 oil tankers are currently stranded in the strait, while daily transits have plummeted to four vessels—a sharp decline from the pre-conflict average of 24 per day.

China, the world's largest energy importer, relies on the strait for 45% of its oil imports, and Iranian crude accounts for over 80% of its purchases from the Middle East. Diplomatic sources confirm that Beijing is actively negotiating with Tehran to ensure safe passage for Qatari LNG and crude oil vessels, despite Iran's explicit ban on U.S., Israeli, and European ships according to reports. The conflict has driven crude prices above $80 per barrel, compounding costs for energy-intensive Chinese industries such as steel and petrochemicals.

To mitigate risks, China has leveraged strategic oil reserves sufficient for 104 days of demand and a "floating stockpile" of Iranian crude already en route according to analysis. However, analysts warn that prolonged disruptions could strain these buffers, particularly as alternative shipping routes like Iran's Jask Port or UAE's Fujairah remain insufficient to offset lost capacity as sources indicate. While Beijing avoids direct military involvement, its diplomatic envoy Zhai Jun has been deployed to the region to de-escalate tensions and safeguard energy lifelines as reported. The crisis underscores China's vulnerability to geopolitical instability in a region vital to its economic growth.