China Oil Imports Drop 41 Percent Amid Hormuz Disruptions and Reserve Drawdown

Energy prices rose sharply during the week of July 13-17, 2026, after Iran increased ship attacks aimed at closing the Strait of Hormuz and the U.S. military resumed daily strikes on Iranian targets. Months of disruption to the waterway that carries a large share of global crude trade produced smaller price increases than many analysts had expected.

Chinese customs data published July 14 showed oil imports fell 41.3 percent year over year to 29.27 million tons in June, the lowest monthly total since October 2016. The dollar value of those imports reached $22.4 billion, close to the $26.5 billion average recorded in the 36 months before the conflict began.

China absorbed 20 percent of all internationally traded crude oil barrels in 2025, with nearly half of its imports coming from the Middle East, including effectively all discounted Iranian barrels.

The country began drawing on its commercial and strategic petroleum reserves about two months into the war and has reduced purchases since. It has drawn down inventories at a rate of 600,000 to 700,000 barrels per day since May and held 1.2 billion barrels in above-ground tanks as of July.

Seaborne crude accounts for more than 90 percent of Chinese imports, though overland pipelines from Russia, Kazakhstan and Myanmar have provided additional supply.

Peak prices from March through May remained comparable to levels after Russia's 2022 invasion of Ukraine but stayed lower than many forecasts. "The Chinese cut in oil purchases helped other purchasers in the international market, alleviating the spike somewhat," Juscelino Colares, professor of law at Case Western Reserve University, told Newsweek.

He added that any future increase in Chinese buying could amplify price surges.

The United States has released barrels from its Strategic Petroleum Reserve. Saudi Arabia has routed oil through its pipeline to the Red Sea port of Yanbu, and the United Arab Emirates has increased exports from Fujairah, outside the strait. The International Energy Agency noted in 2025 that rising electric vehicle use in China has already reduced annual petroleum consumption.