Iran's Kharg Island Attack Causes Panic in China: What It Means to BeijingThe intensifying confrontation, particularly the strike on Iran's Kharg Island, has placed Beijing in a panic, with drivers hurrying to fill their vehicles' tanks and enormous lines at gas stations.
US President Donald Trump branded the island as Iran's 'crown gem', and it was bombarded earlier this week. Its energy infrastructure was spared, but Trump threatened to destroy it if Iran disrupted the free and safe transit of ships through the Strait of Hormuz. Earlier today, in a new threat to Iran, Trump stated that he would strike the island again "just for fun".

How it affects China
The little coral island located around 21 miles (33 kilometers) off Iran's coast serves as the major terminal for practically all of the country's oil exports. Since the start of the war, Iran has exported 13.7 million barrels, and many tankers were recently seen loading at Kharg, according to the Associated Press. Much of the oil exported from Iran via the Kharg Island is delivered to China, the world's largest petroleum importer.
According to research, China is by far the largest importer of Iranian oil, accounting for over 91% of the country's oil exports in 2024. Last year, China reportedly imported 1.38 million barrels per day of Iranian oil.

According to Reuters, the biggest importers of Iranian oil are Chinese independent refiners known as teapots, which are primarily concentrated in Shandong province. They are drawn to the discount over non-sanctioned barrels.
Given its oil imports, Beijing is the first to face any supply disruptions as a result of the current battle. If oil shipments from Iran are disrupted, adding to the disruption in the Strait of Hormuz, global petroleum prices may rise further due to a lack of supply.
Effects of the Iran War in China
The intensifying confrontation, particularly the strike on Iran's Kharg Island, has placed Beijing in a panic, with drivers hurrying to fill their vehicles' tanks and enormous lines at gas stations.China has boosted regulated retail gasoline and diesel prices by the most since March 2022, following a spike in international oil costs caused by the Iran war. The world's second-largest oil consumer raised the retail price caps for gasoline and diesel by 695 yuan ($100.46) and 670 yuan ($96.84) per metric ton, respectively. Between February 23 and March 9, China saw a 10% increase in fuel prices, rising from Rs 99.3 in February to Rs 109.4 in March.
As the war began, China imposed an immediate restriction on refined fuel exports in March, in an effort to prevent a potential domestic fuel shortage.

Iran's message to the Strait of Hormuz
Mojtaba Khamenei, Iran's new Supreme Leader, recently stated that the Strait of Hormuz, which transports roughly one-fifth of the world's oil supply, must remain closed as leverage against the United States. However, the country is allegedly considering allowing a limited number of oil tankers to cross the strait, but only if the oil cargo is traded in Chinese currency, CNN said.
Global oil transactions are typically handled in US dollars. The sole notable exception is Russian oil under sanctions, which is frequently exchanged in roubles or Chinese yuan.