BEIJING — China significantly reduced its crude oil imports during the recent Iran war, a move analysts credit with preventing global oil prices from reaching the $150 per barrel forecasts. Between February and June, the world's largest oil importer cut its crude purchases by 5.5 million barrels per day, representing half of its total imports.

This reduction helped stabilize markets even as Iranian military actions rendered the Strait of Hormuz impassable. The closure trapped approximately 14 million barrels per day of crude inside the Gulf, creating a major supply shock.

Experts estimate China's demand reduction shaved more than $30 off the price of Brent crude, the international benchmark. China's gross domestic product continued growing during the conflict.

Other governments also moved to address the supply disruption. The United Arab Emirates and Saudi Arabia rerouted an additional 5 million barrels per day through pipelines that bypassed the Strait. Officials in Washington and Tokyo released a record 2 million barrels per day from their emergency stockpiles, while some developing nations implemented state-led rationing to reduce domestic consumption.

China's central planners can act unilaterally on orders from President Xi Jinping, giving Beijing a distinct advantage in market responsiveness compared to OPEC, which requires consensus among 21 countries to implement production decisions.

China leverages three primary mechanisms to influence oil markets. Its national petroleum stocks serve as a critical tool. In the 12 months leading up to early 2026, China acquired 200 million barrels of crude at reduced prices during a period of oversupply, adding to its already substantial reserves of 1 billion barrels.

Of the 11.6 million barrels per day China imported in February, up to 1 million barrels per day constituted excess purchases that could be forgone by reducing its stockpiling efforts.

After its final pre-war Gulf shipments arrived in late April, China began drawing down its extensive reserves. By July, the country's oil inventories had decreased by 70 million barrels, according to data from Vortexa. This strategic use of reserves allowed China to absorb a significant portion of the global supply shock.