New Delhi: China has emerged as one of the biggest beneficiaries of the oil crisis that is unfolding around the world owing to the hostilities in West Asia.
According to top Indian intelligence sources, cited by CNN-News18 in a report, Beijing has continued to secure large volumes of discounted Iranian crude, ensuring stable energy supplies even as geopolitical tensions rattle global markets.
China currently buys 80–90 per cent of Iran’s oil exports, estimated at 1.3–1.6 million barrels per day, with imports at times nearing 2 million barrels per day in early 2026. The crude is reportedly purchased at $8–$12 per barrel below Brent prices, allowing China to save billions of dollars annually.
China’s strategic and commercial crude reserves
The report further mentioned that China also built strategic and commercial crude reserves during 2025, providing a buffer against possible disruptions in the Strait of Hormuz.
A major element enabling the trade is a covert maritime network often called the “shadow fleet”. Intelligence assessments mention that around 400 vessels are involved in transporting sanctioned Iranian oil. These tankers often switch off tracking transponders or use spoofing techniques to hide their movements.
How the West Asia war is helping China
Oil is loaded near Kharg Island in Iran and transferred through ship-to-ship operations in remote waters off Oman, Malaysia or the Gulf of Oman, before being relabelled and routed to China’s independent “teapot” refineries. These ships also change names and flags and their ownership is often with shell companies operating in UAE, Hong Kong and Dubai.
For Tehran, this oil trade is a major financial lifeline. As per intelligence estimates, the network generates around $25–30 billion annually.
Beyond energy gains, the regional conflict is also providing China valuable military insights. Chinese analysts are reportedly studying Western weapon systems and tactics deployed against Iranian targets.