China faces oil squeeze after US-Israel strikes on Iran
South China Morning Post
by Brian Rhoads,Neil DenslowMarch 2, 2026
AI-Generated Deep Dive Summary
China is grappling with an oil supply crunch as tensions escalate between the US, Israel, and Iran. Oil prices have surged to their highest levels in four years, driven by the closure of the Strait of Hormuz, a critical shipping route for global crude supplies. Brent crude, the international benchmark, rose by 14%, surpassing $82 per barrel—the highest price since January 2025. The conflict has forced shipowners and traders to avoid the strategic strait, which typically handles about one-fifth of global oil shipments, including a significant portion destined for China.
The situation is particularly concerning for China, which imports over 7 million barrels of oil per day from the Middle East—a region heavily reliant on the Strait of Hormuz. With global supplies constrained and prices at record highs, China faces heightened energy costs that could ripple through its economy. This disruption has already led to inflationary pressures and raised concerns about the country’s ability to maintain its energy security. The conflict’s impact on oil markets underscores the delicate balance of global supply chains and highlights the vulnerabilities in China’s energy dependency.
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Originally published on South China Morning Post on 3/2/2026