We all know by now... China isn’t exactly panicking over a Strait of Hormuz blockade.


Before any conflict, their oil imports were already diversified.
~14% from Saudi Arabia, 11% from Iran, 29% from the rest of the Middle East, 20% from Russia and the remaining 26% from elsewhere.
So they were never overly dependent on one source to begin with.
Even now, Iranian oil hasn’t completely stopped flowing to China, which already puts them in a stronger position than most Asian countries.
Yes, they’ve still taken a hit by losing around 20% of total oil imports is real pressure.
Saudi Arabia and the UAE have rerouted crude through alternative channels
And more importantly, China has spent the last decade preparing for this exact kind of scenario by building over 1B barrels in strategic reserves.
So even if Iranian supply stopped completely for two months, it would only cut into about 10% of those reserves.
Source: @KobeissiLetter
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