AxiosJul 30, 2026

Iran war shows China role in setting the price of oil

Data: China's General Administration of Customs; Chart: Matt Phillips/Axios The Iran war has revealed China's enormous power over global oil prices, thanks to its position as the world's largest buyer. Why it matters: China's reaction to the oil shock — by substantially withdrawing from buying on world markets — helped prevent the worst of the price spikes that experts thought would follow from the effective closure of the Strait of Hormuz. Catch up quick: After the U.S. and Israel launched the war on Feb. 28, Chinese crude oil imports dove as prices spiked. At first, the decline in imports didn't surprise analysts. (China has long been known as a price-sensitive buyer.) Yes, but: Few expected that China could maintain this low level of oil buying without deeply damaging its domestic economy. But as the war approaches its sixth month, China has done just that. By the numbers: Through June, Chinese oil imports remain down over 40% from the previous year. "I guess the surprise

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