China’s oil and gas imports fell sharply amid Middle East tensions
China’s energy imports declined significantly in April as disruptions in the Strait of Hormuz impacted crude oil and natural gas shipments.
According to Chinese customs data, crude oil imports dropped nearly 20% year-on-year to 38.47 million tons, the lowest level since July 2022. Gas imports also fell around 13% to 8.42 million tons.
The decline comes after shipping activity through the Strait of Hormuz slowed sharply following escalating tensions involving Iran, the US, and Israel.
The Middle East remains one of China’s biggest energy suppliers, accounting for nearly half of its crude imports and about one-third of LNG purchases.
What Happens If Hormuz Remains Blocked?
If the Strait of Hormuz stays blocked for weeks or months, the impact could become one of the largest global economic shocks since the 1970s oil crisis.
Around 20% of the world’s oil and LNG supply normally passes through Hormuz, making it the world’s most important energy chokepoint.
Global Commodity Prices During Hormuz Crisis (May 2026)
| Commodity | Approx Price (May 2026) | Trend | Impact on Markets |
|---|---|---|---|
| Brent Crude Oil | $101–126/barrel | 🔺 Very High Volatility | Biggest inflation driver globally as Hormuz disruption choked oil supply |
| WTI Crude Oil | $90–106/barrel | 🔺 Strong Uptrend | US oil benchmark surged amid Middle East supply fears |
| Natural Gas (US) | ~$2.8/MMBtu | 🔺 Moderate Rise | LNG disruptions increased global gas volatility |
| European Natural Gas | €48–60/MWh | 🔺 Sharp Spike | Europe faced LNG supply concerns from Qatar disruptions |
| Thermal Coal | ~$130/ton | 🔺 Rising | Asian utilities shifted from LNG to coal |
| Gold | ~$3,300–3,450/oz | 🔺 Safe-Haven Rally | Investors moved into gold during geopolitical uncertainty |
| Copper | ~$6.1–6.2/lb | 🔺 Strong Recovery | Supply fears and infrastructure demand supported prices |
| Iron Ore | ~$105–115/ton | 🔺 Stable to Positive | Chinese imports remained resilient despite slowdown |
| Aluminum | ~$2,700–2,900/ton | 🔺 Moderate Rise | Gulf supply risks supported aluminum prices |
| Urea Fertilizer | +50% from pre-war levels | 🔺 Explosive Increase | Fertilizer shortages emerged due to Gulf disruptions |
| Soybeans | ~$12–13/bushel | 🔺 Positive | Chinese imports rose sharply from US and Brazil supply |
| Steel | Mixed / Weak | 🔻 Under Pressure | Chinese exports weakened as Middle East demand slowed |
| Helium | Supply Shortage | 🔺 Strong Spike | Qatar LNG disruption hit helium supply chains |
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India Angle: Why the Hormuz Crisis Matters So Much for India
India is among the world’s most vulnerable major economies to a prolonged Strait of Hormuz disruption because the country imports nearly 85–88% of its crude oil needs and a large portion of its LPG and LNG requirements.
India Impact Table
| Area | Impact on India | Risk Level |
|---|---|---|
| Crude Oil Imports | Import costs surge sharply | Very High |
| Petrol & Diesel Prices | Potential price hikes or higher subsidy burden | High |
| Rupee | Weakens against US dollar | High |
| Inflation | Fuel and food inflation rise | High |
| Stock Market | Volatility increases | High |
| Airlines | Jet fuel costs rise sharply | High |
| Oil Companies | Upstream firms benefit, OMCs suffer | Mixed |
| Fiscal Deficit | Subsidy burden may rise | Medium-High |
| GDP Growth | Growth slows if oil stays above $100 | Medium-High |
| LPG Supply | Supply-chain disruptions possible | High |
Here’s what happened today and why traders reacted
Markets reacted after the latest trade data highlighted growing pressure on China’s energy supply chain.
Oil imports were lower both year-on-year and compared to March levels. Earlier shipments had already departed before tensions escalated in late February.
Ship-tracking firm Kpler said China’s LNG imports dropped to an eight-year low in April as shipping disruptions intensified.
The data increased fears of tighter global energy supplies and higher price volatility.
“Supply concerns are beginning to reshape commodity trade flows globally,” analysts tracking the energy market said.
Key developments investors tracked today:
- China’s crude imports fell to the lowest since July 2022
- LNG imports touched an eight-year low
- Refined fuel exports plunged sharply
- Coal demand rose as industries searched for alternatives
- Commodity markets saw higher volatility
China is prioritising domestic fuel security over exports
As supply risks increased, Beijing reportedly shifted focus toward protecting domestic fuel availability.
China’s refined fuel exports dropped around 38% year-on-year to 3.12 million tons, the lowest level in nearly a decade.
The move suggests authorities are prioritising diesel and gasoline supplies for local consumption instead of overseas markets.
Coal demand also strengthened as industries looked for alternatives to expensive gas imports. However, coal imports still declined around 13% as China relied more on domestic production.
“The energy disruption is forcing countries to depend more heavily on internal supply chains,” market observers noted.
Metals and industrial commodities are also seeing pressure
The Hormuz disruption is beginning to impact industrial metals and commodity flows as well.
China’s aluminum exports rose nearly 15% to 598,000 tons, supported by strong domestic production. Steel exports, however, fell around 9% as Middle East demand weakened.
Copper imports showed mixed trends.
Refined copper imports edged slightly higher to 452,000 tons due to lower global prices. But copper concentrate imports fell nearly 20% compared to last year.
Iron ore imports remained relatively stable at nearly 104 million tons.
Commodity trends investors are watching:
- Aluminum exports increased sharply
- Steel exports weakened amid slower demand
- Copper concentrate imports declined
- Iron ore demand remained stable
- Coal consumption continued rising domestically
What impact could this have on global markets and investors?
For investors, the biggest concern is the risk of prolonged disruption in global energy routes.
The Strait of Hormuz handles a major portion of global oil and LNG shipments. Any extended blockage could increase volatility across energy, shipping, refining, and commodity markets.
Higher fuel costs may also increase inflation pressure globally.
Meanwhile, China’s reduced refined fuel exports could tighten fuel supplies across parts of Asia.
“Energy security is now becoming a central market theme again,” analysts said.
Soybean imports into China also rose nearly 40% as US and Brazilian supplies increased ahead of fresh trade discussions in Beijing next week.
The latest data signals that the Hormuz crisis is now influencing not only geopolitics, but also global trade flows, commodity pricing, and investor sentiment worldwide.
