Oil Shock Tests China’s Gulf Dependence, but Beijing’s Diversified Energy Strategy May Blunt the Impact

A crude oil tanker is guided to a berth at the oil terminal at the port in Qingdao, in China’s eastern Shandong province on March 7, 2026.

There appears to be mounting concern but not outright panic over the surge of oil prices on Monday, brought on by the war between the U.S./Israel, and Iran. Oil prices opened the week above $100 a barrel for the first time in four years in response to massive disruptions in both production and transportation.

About 20% of China’s total energy mix relies on imported oil and gas, almost half of which transits through the Strait of Hormuz, which is now closed to most maritime traffic.

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by Eric Olander

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