China Moves to Resume US Oil and LNG Imports Amid Strait of Hormuz Tensions

Growing instability in the Strait of Hormuz due to the war in Iran poses a significant threat to China's energy security, as about 45% of its crude oil imports pass through this chokepoint.

To mitigate this risk, China is diversifying its supply chain by resuming imports of U.S. crude oil and LNG, which had been halted since 2025 due to tariffs.

This move is interpreted not only as a physical hedge against supply chain bottlenecks but also as a strategic bargaining chip for potential tariff relief ahead of the upcoming U.S.-China summit.

China is making a significant pivot in its energy strategy by resuming imports of U.S. oil and gas.

This decision is driven primarily by a pressing need for energy security. The recent conflict involving Iran has severely disrupted traffic through the Strait of Hormuz, a critical maritime chokepoint. For China, this is a major vulnerability. In 2025, about 45% of its crude oil imports passed through this very strait, sourced from countries like Saudi Arabia, Iraq, and Iran itself. The International Energy Agency (IEA) has warned that a full closure of Hormuz would represent the "greatest global energy security threat in history."

So, how does turning to the U.S. help? First, it's a matter of logistics. U.S. crude oil, shipped from the Gulf Coast, completely bypasses the Strait of Hormuz. By resuming imports of about 600,000 barrels per day (b/d), China can immediately reduce its dependency on the volatile strait by over 5 percentage points. This is a tangible and immediate way to de-risk its supply chain. The alternative—relying on bypass pipelines in the Middle East—is insufficient, as their combined capacity can only cover a fraction of the normal oil flow.

Second, this move has a crucial geopolitical dimension. This shift comes just before a planned U.S.-China summit in Beijing. Since early 2025, China had effectively blocked U.S. energy imports by imposing steep tariffs—10% on crude oil and 15% on LNG. By signaling a willingness to buy American energy again, Beijing is likely creating a bargaining chip. This "goodwill gesture" could be used to negotiate a broader easing of trade tensions and tariffs.

In essence, China's decision is a two-pronged strategy. It's a practical, physical hedge against the immediate logistical nightmare in the Middle East. At the same time, it's a calculated political maneuver aimed at improving strained relations with Washington. This blend of energy security and diplomacy will shape global energy flows in the coming months.

Strait of Hormuz: A narrow, strategic waterway between Iran and Oman, connecting the Persian Gulf to the open ocean. It is the world's most important oil chokepoint.
b/d (barrels per day): A standard unit of measurement for the volume of crude oil production or consumption.
Geopolitical Risk: The risk that political actions, conflicts, or instability in a country or region will have a negative impact on investments, trade, and markets.

China Moves to Resume US Oil and LNG Imports Amid Strait of Hormuz Tensions

Growing instability in the Strait of Hormuz due to the war in Iran poses a significant threat to China's energy security, as about 45% of its crude oil imports pass through this chokepoint.

To mitigate this risk, China is diversifying its supply chain by resuming imports of U.S. crude oil and LNG, which had been halted since 2025 due to tariffs.

This move is interpreted not only as a physical hedge against supply chain bottlenecks but also as a strategic bargaining chip for potential tariff relief ahead of the upcoming U.S.-China summit.

China is making a significant pivot in its energy strategy by resuming imports of U.S. oil and gas.

Strait of Hormuz: A narrow, strategic waterway between Iran and Oman, connecting the Persian Gulf to the open ocean. It is the world's most important oil chokepoint.
b/d (barrels per day): A standard unit of measurement for the volume of crude oil production or consumption.
Geopolitical Risk: The risk that political actions, conflicts, or instability in a country or region will have a negative impact on investments, trade, and markets.