China reroutes oil shipments as Hormuz disruption reshapes energy flows

Wednesday 18 March 2026 - 12:50

By: Dakir Madiha

China reroutes oil shipments as Hormuz disruption reshapes energy flows

China is drawing on years of strategic preparation to cushion the impact of escalating disruptions to global oil flows, as military tensions involving Iran enter a third week. As the world’s largest oil importer, Beijing has relied on large crude stockpiles, alternative shipping routes, and rapid electrification to maintain energy stability.

The country entered the الأزمة with stronger reserves than many analysts expected. In January and February 2026, China increased crude imports by 15.8 percent year on year to 96.93 million metric tons, adding to already significant inventories. Commodity intelligence firm Kpler estimated China’s onshore crude stocks at around 1.2 billion barrels in January, enough to cover three to four months of imports. Barclays Research said these reserves could be used to stabilize short-term supply disruptions and limit sudden price spikes.

Domestic production has also remained steady. Official data showed crude output rose 1.9 percent year on year in the first two months of 2026 to 35.73 million metric tons, or about 4.42 million barrels per day. China’s overall energy self-sufficiency rate is projected to reach 84.6 percent this year, according to research from China National Petroleum Corp.

With tanker traffic through the Strait of Hormuz sharply reduced due to Iranian attacks on commercial vessels, Chinese shipping firms have turned to alternative routes. A notable development involved the supertanker Kai Jing, operated by China Merchants Energy Shipping, which transported 2.2 million barrels of Saudi crude via the Red Sea. The vessel passed through the Bab el-Mandeb strait after loading at the Saudi port of Yanbu, bypassing Hormuz entirely. More than ten additional Chinese supertankers are heading to Yanbu, although the port can only handle 40 to 50 percent of the non-Iranian shipments that previously transited Hormuz.

Iranian crude exports to China have continued despite the conflict. Kpler data shows Iran exported more than 1.5 million barrels per day in March, with about 1.25 million barrels per day delivered to Chinese ports. China accounts for over 80 percent of Iran’s crude exports.

China’s rapid energy transition has provided an additional buffer. Oil represents roughly one fifth of the country’s total energy mix, a lower share than in many Asian economies. Electricity generated from coal and an expanding base of renewable sources now dominates consumption. Renewables met about 80 percent of new electricity demand in 2024, and China’s clean energy capacity surpassed fossil fuel capacity for the first time in 2025, reaching 1,494 gigawatts. The country’s latest five-year plan emphasizes expanding strategic reserves and accelerating renewable deployment.

Despite these measures, risks remain. Several large Chinese vessels are stranded in the Persian Gulf, and insurers have stopped offering war risk coverage for ships transiting Hormuz since March 12. Alternative routes through the Red Sea cover only a portion of previous capacity. COSCO Shipping has also suspended new bookings through the strait, leaving China’s energy buffer dependent on how long the disruption persists.