China Helped Stabilize Oil Prices Amid Hormuz Closure
China played a crucial role in preventing a severe global oil price surge after the Strait of Hormuz closure disrupted energy supplies, according to S&P Global Ratings. By reducing crude imports and drawing on its extensive stockpiles, China helped keep prices from spiking as high as initially feared. This action cushioned both the Chinese economy and the broader global market against an acute crisis. However, recent data shows signs of a gradual rebound in China's oil imports, raising concerns about potential upward pressure on global energy markets. Economists warn that if Beijing resumes pre-war import levels, it could exacerbate inflationary pressures and slow economic growth worldwide. Despite this risk, current oil prices remain manageable for the global economy. China’s strategic reserves include 1.4 billion barrels of crude as of December 2025—more than double U.S. holdings—and its policy framework has been designed to buffer against supply shocks through stockpiling and clean energy investments.
Topics: China crude oil imports energy supply S&P Global Ratings Strait of Hormuz closure