By The New York Times (Asia) | Created at 2024-10-04 13:48:33 | Updated at 2024-10-04 19:31:26
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China has strategic reserves and alternatives like electric cars, should oil imports ever be interrupted.
Oct. 4, 2024, 9:35 a.m. ET
Iran’s oil infrastructure has been pushed to the center of the escalating conflict in the Middle East, but an Israeli strike on Iran’s energy facilities would also affect China directly.
On Thursday, President Biden said the United States was “in discussion” about the possibility that Israel might strike Iran’s vast oil sector.
His comments have already sent oil prices sharply higher in global markets, even though most countries shun Iran’s oil because of international sanctions on Tehran.
China is the exception. It buys more than 90 percent of Iran’s oil exports.
China relies on imports from around the world for almost three-quarters of its oil consumption. The loss of supply from Iran would have China turning to global markets for even more of its energy needs.
For Iran, exports to China are a vital source of funds. The country’s roughly $2 billion a month in oil sales to China represent at least 5 percent of Iran’s entire economic output. They bankroll the Iranian government and provide the cash that Iran needs to pay for its own imports.
Iran exports nearly half of its oil production and uses the rest for its own domestic needs. The sliver of Iran’s oil exports that China does not purchase is shipped mainly as economic assistance or barter to two nearly bankrupt allies, Syria and Venezuela, that have little money to pay for fuel.
