China likely to boost US oil imports as Iran conflict disrupts supply

U.S. Energy Secretary Chris Wright told CNBC that China will likely buy more American crude as the Iran conflict chokes the Strait of Hormuz, a key oil artery [3].

Wright said the disruption forces Beijing, the world’s biggest oil importer, to look beyond its traditional Middle Eastern sources. He pointed to the recent U.S.–Israeli military action on Feb. 28 that prompted Iran to block Hormuz, cutting off roughly 20 % of global oil flows [2]. With Chinese imports from the Persian Gulf stalled, the U.S. Gulf Coast and Alaska become the next logical supply hubs, he added.

China’s strategic petroleum reserve, nearly 1.4 billion barrels as of Dec 2025, already helped it weather the shock. In April 2026 the government authorized state‑owned refiners like Sinopec and CNPC to tap commercial reserves, and by mid‑May the drawdown extended into the strategic stockpile [1]. The move underscores Beijing’s urgency to replace discounted Iranian barrels—once up to 1.2 million barrels per day—whose loss would strain its trade balance and yuan [2].

Wright’s expectation rests on a simple supply‑demand calculus: when a usual supplier becomes a battlefield, buyers shift to the next available source. He likened the emerging U.S.–China energy trade to a “natural partnership” between the two largest economies, noting that China will also look to Alaska as U.S. production ramps up under the Trump administration [3].

If China does turn to U.S. crude, the shift could reshape global oil routes and affect commodity markets. Past coordinated releases from strategic reserves in 2022 briefly lowered prices, but the impact faded quickly; the current drawdown’s effect will hinge on how long the Hormuz blockage lasts [1]. Moreover, higher Chinese demand for U.S. oil may pressure the yuan, potentially reviving crypto activity among Chinese‑linked wallets that historically spikes during yuan weakness [2].

The real question now is how quickly China can reorient its imports and whether the Hormuz blockage will persist long enough to make the U.S. a lasting alternative source.