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Wed, 18 Mar 2026

Wed, 18 Mar 2026 The Iran war is causing a global energy crisis - can China withstand it?

With oil supply disrupted, Beijing's oil reserves and renewable energy push are being put to the test.
However, China is better positioned than its neighbors to weather this crisis due to its strategic stockpiling over the years. The country has built up reserves of around 900 million barrels, which is equivalent to just under three months' worth of imports. This buffer will help China navigate times of disruption, but the country's dependence on oil is decreasing as it continues to transition towards renewable energy sources. China's transition to renewables has helped protect its economy from global risks like the Iran conflict. The country's investment in wind and solar farms has led to a significant increase in clean energy production, with more than half of installed capacity coming from non-fossil fuels. As a result, crude oil only accounts for around 20% of China's total energy consumption. The country's shift towards electric vehicles (EVs) has also reduced its reliance on oil. EVs account for at least one-third of new cars sold in China, which means that drivers are less affected by oil price fluctuations. However, the rising cost of fuel and electricity during times of crisis can still impact the economy. As the world's largest energy importer, every barrel of oil will now come with a higher price tag due to the war, but China has no choice but to pay this premium.