Trump to Meet Xi Jinping for State Visit as Iran Conflict Disrupts Global Oil Markets

Premier Xi Jinping will host President Donald Trump for a state visit on May 14 and 15, with the war in Iran expected to dominate discussions between the two leaders. China has the world's largest stockpile of crude oil even as it remains the globe's biggest importer of energy. The country's crude buying has helped prevent even higher spikes in oil prices amid the Strait of Hormuz deadlock.

China's actions have also provided a lifeline to Asian importers most directly impacted by the halt in Middle East energy deliveries. U.S. sanctions on small refineries that purchase Iranian crude.

Chinese authorities have encouraged teapot refineries to import Iranian oil because they are seen as immune to foreign sanctions, according to Teneo. China's non-compliance with sanctions could prompt Washington to launch a second round of restrictions on Sino-Iranian trade, Teneo stated.

Oil markets are dealing with a rapidly compounding stock shock rather than a flow disruption, according to Kpler.

Most Middle East cargoes loaded before the war have now been discharged. The analytics group said that the inventory drawdown will accelerate and local refining will slow. U.S. 1 million barrels per day of crude oil to strategic reserves in 2025.

Preliminary government data indicate that China has continued to build inventories in 2026. Government and commercial oil stockpiles in China averaged around 360 million barrels in December 2025.

U.S. and sanctions-related disruption mean strategic petroleum reserves are acting as a hedge against supply constraints, price volatility and currency volatility, according to the Oxford Energy Institute.