Key Facts
• June 13, 2025: Israel launched airstrikes on Iranian nuclear-related facilities.
• China’s economy, valued at $19 trillion, heavily depends on coal, natural gas, and oil.
• In 2024, China was the world’s largest energy consumer and second-largest oil consumer.
• Over 90% of Iran’s discounted oil exports unofficially reach China via intermediaries.
• Hormuz Strait, a critical chokepoint, handles up to 20 million barrels of oil daily.
• Oil prices surged post-conflict: WTI crude hit $76/barrel, Brent crude reached $77/barrel.
• Potential Hormuz Strait closure could push oil prices above $100/barrel, risking global recession.
• China’s largest oil imports in 2024 came from Russia, followed by Middle Eastern nations.
• The US imports most of its oil from Canada, with Middle Eastern oil accounting for only 8%.
• China is stockpiling crude oil to prepare for potential supply disruptions.
• Xi Jinping and Vladimir Putin condemned Israel’s actions and called for immediate ceasefire.
Summary
The escalating conflict between Israel and Iran poses significant risks to global energy markets, with China being particularly vulnerable due to its heavy reliance on Middle Eastern oil. While the US sources most of its oil from Canada, China depends on the Persian Gulf region for over half of its oil imports. The Hormuz Strait, a vital oil transit route, could become a flashpoint if Iran retaliates by blocking it, potentially driving oil prices above $100 per barrel and triggering a global economic downturn. In response, China is bolstering its oil reserves to mitigate risks. Meanwhile, global leaders, including Xi Jinping and Vladimir Putin, have urged for de-escalation and immediate ceasefire to prevent further destabilization in the region.
