China Uses Stockpiles to Offset Strait of Hormuz Oil Disruptions

The Government of China is implementing a double-insurance strategy to secure its energy supply following the closure of the Strait of Hormuz. This disruption, caused by hostilities between Iran and the forces of the United States and Israel, resulted in a 25% drop in Chinese crude imports from the Persian Gulf during March 2026.

To mitigate these losses, China shifted its procurement toward other global suppliers. The state increased crude oil purchases from Russia and Brazil and surged imports from Indonesia. These diversification efforts, combined with the strategic drawdown of the world's largest crude stockpile—which totaled nearly 1.4 billion barrels at the end of 2025—limited the total decline in March crude imports to just 2.8%.

The energy crisis intensified in mid-April 2026 when the United States began blocking ships entering or leaving Iranian ports, further restricting the flow of oil. In response to this volatility, the National Development and Reform Commission, via deputy director Wang Changlin, announced plans to continue expanding import channels and increasing reserves to strengthen the nation's emergency response capacity.

These actions demonstrate China's intent to decouple its energy security from the stability of the Persian Gulf. By leveraging massive reserves and alternative trade partners, the government aims to prevent domestic industrial shocks and price volatility despite escalating geopolitical tensions in the Middle East.