A US move to sanction one of China’s largest private refiners over ties to Iran will hurt a vast and already embattled petrochemicals sector — but the collateral damage will extend far beyond oil.
The Hengli petrochemical refinery in Dalian, China. Photographer: Xinhua News Agency/Xinhua News Agency
Oil rose after efforts to resume peace talks over the Iran war stalled, leaving the Strait of Hormuz almost impassable and prolonging the supply disruption that has roiled global markets.
China has kept its massive crude stockpiles intact, despite a collapse in Middle Eastern flows due to the Iran war, with the much-maligned private refiners playing a pivotal role.
An oil and petrochemical storage facility on the outskirts of Shanghai, China, on Tuesday, March 1, 2022. Oil extended its relentless rally before an OPEC+ meeting as the International Energy Agency warned that global energy security is under threat following Russia’s invasion of Ukraine.
Chinese oil majors are selling cargoes of West African and other crudes, according to traders familiar with the deals, a rare move that follows utilization cuts across government-owned refiners as the war in Iran upends global supply.
China is set to import a record volume of US ethane this month as petrochemical producers seek alternative feedstocks for their operations after the war in the Middle East choked off crucial supplies.
Oil and natural gas prices jumped after renewed risks to energy flows via the Strait of Hormuz threatened to jeopardize much-anticipated peace talks between the US and Iran.
The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, on April 18, 2026. Photographer: Asghar Besharati/AP
Oil and European natural gas prices tumbled after the promised re-opening of the Strait of Hormuz bolstered sweeping optimism that the US-Iran conflict will reach an end and ease disruptions to global energy markets.
Oil edged higher as traders weighed signs the US and Iran may extend a ceasefire against a double blockade of the Strait of Hormuz that continues to impede flows.
Pipelines run near oil storage tanks at the Enbridge Inc. Cushing storage terminal in Cushing, Oklahoma, U.S., on Wednesday, March 25, 2015. The fastest oil-inventory growth on record at the main U.S. hub may be about to end, easing concern that storage limits will be strained.
Oil held steady as traders weighed signs of rapidly depleting US reserves against efforts by the US and Iran to seek further talks to end a war that has brought transit through the vital Strait of Hormuz waterway to a near-halt.
Liberty Lift Solutions LLC pumpjacks near Crane, Texas, US, on Saturday, March 15, 2025. The Permian Basin, a sprawling shale patch that lies beneath Texas and New Mexico, is North America's most prolific shale patch. Photographer: Justin Hamel/Bloomberg
Chinese crude oil and natural gas imports fell in March, as the supply crunch in the Persian Gulf began to affect shipments.
TOPSHOT - An oil tanker is docked unloading crude oil at the port in Qingdao, in China's eastern Shandong province, on April 7, 2026. (Photo by CN-STR / AFP via Getty Images) / China OUT
A hoard of Iranian crude on tankers at sea and robust onshore stockpiles in China will provide a cushion for the nation’s independent refiners should a US blockade of the Strait of Hormuz choke off flows.
Qingdao Port Crude Oil Terminal in Qingdao, China. Source: Getty Images/Getty Images AsiaPac
Chinese crude oil and natural gas imports fell in March, as the supply crunch in the Persian Gulf began to affect shipments.
TOPSHOT - An oil tanker is docked unloading crude oil at the port in Qingdao, in China's eastern Shandong province, on April 7, 2026. (Photo by CN-STR / AFP via Getty Images) / China OUT
Oil fell sharply on signs Washington and Tehran are seeking to arrange a second round of peace talks.
Frustrated by Iran’s unwillingness to give up its stranglehold over the Strait of Hormuz, the US is trying to force the issue with its own blockade. Alex Longley breaks down what to know
Saudi Arabia’s crude sales to top importer China are set to halve next month as the war in the Middle East upends flows and lifts prices, according to traders familiar with the matter.
Oil prices should be much higher than current levels if the US goes ahead with a planned naval blockade of the Strait of Hormuz, according to a veteran oil market executive.
Pipes next to the Irving Oil Refinery in Saint John, New Brunswick, Canada, on Wednesday, May 7, 2025. The city is the most vulnerable in Canada to trade friction with the US because of its reliance on the American market for oil, lumber and seafood exports, according to data released in February by the Canadian Chamber of Commerce, CTV news reports. Photographer: Graham Hughes/Bloomberg
China has granted independent refiners additional crude import quotas to allow them to continue to produce fuels at officially mandated levels, helping Beijing to cope with the impact of disrupted supplies from the Persian Gulf.
China has granted independent refiners additional crude import quotas to allow them to continue to produce fuels at officially mandated levels, helping Beijing to cope with the impact of disrupted supplies from the Persian Gulf.
Oil rallied above $110 a barrel after US President Donald Trump vowed an escalation in the war in Iran over the coming weeks, a move that could prolong disruptions to energy flows through the vital Strait of Hormuz.
Oil dropped after President Donald Trump again signaled the potential end to the Iran war that’s roiled markets, even as the Strait of Hormuz remains largely closed and more US troops arrived in the region.
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