China Shifts Energy Suppliers Amid US-Iran Conflict Disruptions
Following the outbreak of war between the US, Israel, and Iran in early 2026, China has significantly altered its energy import strategy to mitigate supply chain disruptions. The conflict has severely restricted tanker shipping through the Strait of Hormuz, causing Middle Eastern crude oil imports to drop from 52% of China's total in 2025 to just 31% by May 2026. Refined fuel imports from the region have effectively ceased. To compensate, China has increased purchases from South America, particularly Brazil, and Eastern Europe, with Russia also boosting volumes. North African nations like Algeria and Egypt have emerged as key suppliers for refined fuels. Despite these adjustments, China's total crude oil imports fell by approximately 10% in the first five months of 2026 compared to the previous year, highlighting the difficulty in fully replacing Middle Eastern supplies. LNG and LPG imports from the Middle East also declined by 43%. This shift underscores the geopolitical impact on global energy markets and China's urgent efforts to diversify sources amidst ongoing regional instability.
Wire timeline
China Shifts Energy Suppliers Amid US-Iran Conflict Disruptions
Following the outbreak of war between the US, Israel, and Iran in early 2026, China has significantly altered its energy import strategy to mitigate supply chain disruptions. The conflict has severely restricted tanker shipping through the Strait of Hormuz, causing Middle Eastern crude oil imports to drop from 52% of China's total in 2025 to just 31% by May 2026. Refined fuel imports from the region have effectively ceased. To compensate, China has increased purchases from South America, particularly Brazil, and Eastern Europe, with Russia also boosting volumes. North African nations like Algeria and Egypt have emerged as key suppliers for refined fuels. Despite these adjustments, China's total crude oil imports fell by approximately 10% in the first five months of 2026 compared to the previous year, highlighting the difficulty in fully replacing Middle Eastern supplies. LNG and LPG imports from the Middle East also declined by 43%. This shift underscores the geopolitical impact on global energy markets and China's urgent efforts to diversify sources amidst ongoing regional instability.
reuters