China buys over 80% of Iran’s oil but isn’t alarmed by oil crisis: How it prepared for a Hormuz shock over 20 years

A crude oil tanker is guided to a berth at the oil terminal at the port in Qingdao, in China’s eastern Shandong province on March 7, 2026. (Photo by CN-STR / AFP)

China is better prepared for oil supply shocks from the Strait of Hormuz crisis due to decades of planning, including large strategic reserves, diversified suppliers, long-term energy deals, and infrastructure investments, reducing its vulnerability to disruptions.

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The escalating conflict involving Iran and disruptions around the Strait of Hormuz have sent oil markets into turmoil. For many countries dependent on Middle Eastern energy supplies, the crisis has raised fears of severe supply shocks. Yet analysts say China may be better prepared than most nations because Beijing has spent nearly two decades planning for precisely this kind of scenario.

According to an analysis published by NDTV, China has quietly built a multi-layered strategy over the past twenty years to ensure that its economy can withstand disruptions in global oil routes such as the Strait of Hormuz. The approach combines strategic reserves, diversified supply routes, long-term energy partnerships and large investments in infrastructure.

Preparing for a Hormuz disruption

China imports a large share of its energy from the Middle East. It buys more than 80% of Iran's shipped oil, data for 2025 from analytics firm Kpler showed. Iranian oil has limited buyers due to US sanctions aimed at cutting off funding to Tehran's nuclear programme.

China purchased on average 1.38 million barrels per day of Iranian oil last year, according to Kpler. That represented about 13.4% of the total 10.27 million bpd of oil it imported by sea.

The Strait of Hormuz alone carries roughly 20 million barrels of oil per day, which accounts for about 20 percent of global oil consumption.

Because the narrow waterway is such a critical choke point, any disruption can quickly affect global energy markets. The current conflict has already reduced tanker traffic dramatically and pushed oil prices above $100 per barrel.

According to the analysis, Beijing has spent years asking a simple question: what happens if the Strait of Hormuz is blocked or becomes too risky for shipping? The answer has been a long-term policy aimed at ensuring China can continue to obtain energy even if Middle Eastern supplies are disrupted.

Building massive strategic oil reserves

One major part of China’s preparation has been the creation of large strategic petroleum reserves.

Over the past two decades, China has steadily built storage facilities capable of holding hundreds of millions of barrels of crude oil. These reserves allow the country to cushion short-term supply shocks while alternative sources are secured.

Reports suggest China’s reserves could cover more than 100 days of oil imports, giving Beijing a significant buffer if global supply routes are interrupted.

Diversifying energy supply sources

China has also worked to diversify its oil suppliers so it is not entirely dependent on the Middle East.

Russia has become an increasingly important energy partner for Beijing. Pipelines and long-term contracts allow Chinese refiners to receive oil and gas directly from Russia without relying on maritime routes vulnerable to conflict.

Analysts say disruptions in Iranian supply could push China even closer to Russia as an energy partner.

In addition to Russia, China has expanded imports from Africa, Central Asia and Latin America as part of a strategy to spread risk across multiple regions.

Long-term energy deals with Iran

Despite diversifying supply, China has maintained strong energy ties with Iran. The two countries signed a 25-year strategic cooperation agreement that includes Chinese investment in Iranian infrastructure and energy projects in exchange for stable oil supplies.

The agreement ensures that China can continue receiving discounted Iranian oil even during periods of geopolitical tension.

Infrastructure built under the Belt and Road Initiative

China has also invested heavily in global infrastructure to secure energy routes.

Through its Belt and Road Initiative, Beijing has financed ports, pipelines and transport corridors across Asia, the Middle East and Africa. These projects are designed not only to expand trade but also to provide alternative pathways for energy supplies.

Pipelines from Central Asia and Russia reduce dependence on sea lanes, while overseas ports help China maintain logistical access to global energy markets.

Avoiding military entanglement

Despite its extensive economic involvement in the region, China has generally avoided military involvement in Middle Eastern conflicts.

Instead, Beijing tends to respond with diplomatic calls for de-escalation and dialogue while focusing on protecting its economic interests.

This approach allows China to maintain relations with multiple countries in the region while minimising political risk.

A long game in global energy security

The current crisis highlights the benefits of China’s long-term strategy. While the disruption of the Strait of Hormuz still poses serious risks for global energy markets, Beijing’s preparations mean it is better positioned than many countries to absorb the shock.

By building large reserves, diversifying suppliers and investing in global infrastructure, China has spent years preparing for the possibility that one of the world’s most important energy corridors could suddenly become unstable.

In that sense, analysts say the unfolding crisis is not entirely unexpected for Beijing. It is a scenario China has been quietly planning for over the past two decades.