As tensions escalate between Iran, Israel, and the U.S. amid fragile ceasefire negotiations, the Iranian oil market is facing heightened volatility.
Certain Asian economies that rely heavily on Iranian crude and stable passage through the Strait of Hormuz now face some of the greatest exposure.
This chart visualizes the breakdown of Iran’s crude oil and condensate exports by destination in 2023.
Data comes from the U.S. Energy Information Administration.
China is the Top Buyer of Iranian Oil
Below, we show the share of Iran’s oil exports by destination.
| Country | Share of Iran’s Crude Oil Exports |
|---|---|
| 🇨🇳 China | 89% |
| 🇸🇾 Syria | 6% |
| 🇦🇪 United Arab Emirates | 3% |
| 🇻🇪 Venezuela | 2% |
In 2023, a staggering 89% of Iran’s oil exports went to China, a sharp rise from just 25% in 2017.
This surge followed renewed U.S. sanctions in 2018, which isolated Iran from most global oil buyers.
Iran is among the world’s largest oil producers, and in recent years, China has become its most critical customer both economically and geopolitically.
As hostilities in the region intensify–marked by U.S. attacks on Iranian nuclear infrastructure and Iranian missile strikes on American bases in Qatar and Iraq—China’s access to Iranian oil is increasingly at risk.
This is because the Strait of Hormuz, a critical route for China’s oil imports, could be disrupted by further conflict or Iranian retaliation.
While Iran supplies only about 13% of China’s total oil imports, the relationship is strategically important, offering China discounted crude and reinforcing its broader regional influence amid Western pressure.
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