China Is Top Buyer Of Iranian Oil—But It Isn’t Vulnerable To Conflict

China imports about a fifth of Iran’s oil—more than any other country—but it may not be the hardest hit if Tehran’s daily exports of one to two million barrels are disrupted.

Last year, China imported $320 billion worth of crude.

The conflict appeared to have ended early after President Donald Trump announced a ceasefire, which both Israel and Iran violated, Reshma Kapadia and Liz Moyer reported for Barron’s Daily.

That announcement followed Iran’s missile barrage on the U.S.’s largest air base in Qatar and the region. Trump dismissed the move as “weak” and “effectively countered.”

Iran had given advance notice of the attack, and Trump cast it as a way for Iran to “get it out of its system.”

Brent crude oil futures fell more than 7%—their steepest drop since 2022—after Iran’s response to a U.S. strike on Iran’s nuclear program on Saturday. Traders viewed the outcome as preferable to a more severe disruption, such as the closure of the Strait of Hormuz, a critical energy transport corridor.

China had called for de-escalation and negotiations, labeling the Persian Gulf and its adjacent waters—including the Strait of Hormuz—as vital international passages for global trade and energy supplies.

Last year, China imported $320 billion worth of crude. However, oil accounts for a smaller share of its GDP compared to other nations.

Countries such as India, South Korea, Thailand, and Singapore are more exposed to economic damage from disrupted oil imports, according to Gerard DiPippo, associate director of the RAND China Research Center. DiPippo noted that China has built up strategic oil reserves and has a flexible energy infrastructure.

Its large refiners can process a wide range of crude grades, giving it the ability to adapt and limit potential damage to its still-recovering economy.