China's Vast Oil Reserves Cushion Its Economy Amid Iran Conflict Shock

The closure of the Strait of Hormuz during the Iran war cut off a route for about 20% of world oil, sending prices soaring. Beijing, however, entered the crisis with a strategic petroleum reserve of roughly 1.5 billion barrels, dwarfing the U.S. reserve of about 413 million barrels and Japan's 263 million barrels. Experts attribute China's resilience to low-cost Russian oil, a two-track economy driven by AI growth and export-led manufacturing, and aggressive expansion of nuclear power and renewable capacity.

Iran has used the conflict to sell nearly $6 billion of oil to China, replenishing its own stockpile. While some observers doubt the reliability of Chinese reserve figures, the broader picture shows a deliberate shift toward energy self-sufficiency, including investments in fusion, space-based solar power, and clean-energy projects abroad, even as some coal projects continue.