What The Iran War Means For China’s Energy Supply

TL;DR

Iran's threat to close the Strait of Hormuz directly endangers China, which relies on Middle Eastern oil for roughly half its crude imports.

Key Points

• 1.The Strait of Hormuz carries 20% of global oil and 14 million barrels/day; 75% of those exports flow to China, India, Japan, and South Korea.
• 2.China is especially exposed: ~50% of its crude comes from the Middle East, and 17% of its total oil supply comes from Iran and Venezuela combined.
• 3.Qatar's LNG facilities were struck by Iranian drones, taking offline a country responsible for ~20% of global LNG exports, compounding the energy disruption beyond oil.
• 4.Analysts believe Trump's strategy targets China indirectly by squeezing its energy proxies (Iran, Venezuela), raising the cost of Chinese global ambitions and potentially deterring a move on Taiwan.