According to reports, the US sanctions prohibit these refiners from accessing the US financial system. China’s Ministry of Commerce issued a prohibition order, stating that the sanctions “improperly restrict business between Chinese enterprises and third countries in violation of international law and the basic norms governing international relations.” In 2025 alone, China purchased over 80 percent of the oil shipped from Iran.

China’s reliance on Middle Eastern oil is significant—more than half of its oil imports come from this region. The country has fortified its energy security by building extensive overland pipelines from Russia and Central Asia. Additionally, China’s teapot refineries represent a quarter of its total refinery capacity, showcasing their vital role in processing crude oil.

Key statistics:

• Strategic oil stockpiles were approximately 1.4 billion barrels at the start of the conflict in 2026.
• About 30 percent of China’s end-use energy is electric, indicating a shift towards cleaner technologies.
• The conflict has led to a 70 percent increase in crude oil prices since it began.

The implications of these developments extend beyond immediate economic impacts. The closure of critical shipping routes could present opportunities for Chinese electric vehicles (EVs) to replace gasoline-powered cars, as noted by the Secretary-General of the China Passenger Car Association. Moreover, experts suggest that this conflict may enhance China’s exports of clean energy technology products to the Middle East—similar to how Russia’s invasion of Ukraine boosted exports to Europe.

As China Southern Airlines and Xiamen Airlines place orders for 137 Airbus A320neo jets, the potential for increased air travel demand also looms large. This order not only strengthens Airbus’s position in China but also reflects broader trends in aviation and energy consumption.

This proactive stance against US sanctions signals China’s determination to maintain its economic interests while asserting its influence on global energy markets. As tensions escalate, how these dynamics will evolve remains crucial for both regional stability and international relations.

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