China Halts Diesel and Gasoline Exports After Strait of Hormuz Closure

The government of China has ordered its largest oil refining companies to suspend exports of diesel and gasoline following the reported disruptions in the Strait of Hormuz.

The move is aimed at protecting domestic fuel supplies and preventing potential shortages as tensions in the region disrupt global oil transportation.

The directive covers China’s five biggest refining groups, PetroChina, Sinopec, CNOOC, Sinochem Group, and private refiner Zhejiang Petrochemical, all of which regularly receive fuel export quotas from the government.

China is the world’s largest crude oil importer and relies heavily on Middle Eastern supplies to meet its energy needs.

Data from the analytics firm Kpler noted that around 57 percent of China’s direct seaborne crude oil imports in 2025 came from the Middle East.

China Suspends Diesel and Gasoline Exports as Strait of Hormuz

According to reports, officials from the National Development and Reform Commission met with refinery executives and verbally called for a temporary suspension of refined product shipments to begin immediately.

This follows a declaration by the Islamic Revolutionary Guard Corps (IRGC) that the strait had been closed, threatening to set ablaze any vessel attempting to pass through it.

Also Read: Global Stocks Expected to Drop as IRGC Claims Total Control of Strait of Hormuz

Mohammad Akbarzadeh, an IRGC Navy official, said the strait is under the complete authority of Iran’s navy, signaling Tehran’s intent to assert dominance over the key shipping lane.

“Currently, the Strait of Hormuz is under the complete control of the Islamic Republic’s Navy,” said Mohammad Akbarzadeh.

Following the disruptions in the Strait of Hormuz, oil prices have risen sharply, with Brent crude surging by 10-13 percent in initial trading.

The Strait of Hormuz is one of the world’s most critical shipping routes for crude oil, and its closure has raised concerns about supply disruptions and rising energy prices.

The strait carries roughly 13 million barrels per day, about 31 percent of all seaborne crude flows, with China, India, Japan, and South Korea together accounting for nearly 70 percent of those shipments.

China Prioritizes Domestic Oil Supply

The export halt is intended to secure domestic fuel supplies amid disruptions to crude shipments from the Gulf.

The ongoing conflict began after the United States–Israel strikes on Iran on February 28. Since then, China’s crude imports have been severely disrupted.

Also Read: Fresh Twist as Anti-Iran Fighters Reportedly Launch Ground Offensive Amid US Talks

Around half of its seaborne oil imports from Gulf countries such as Saudi Arabia, Iraq, and the United Arab Emirates have stalled.

Iranian supplies, which accounted for about 13 percent of China’s imports in 2025, have stopped completely, placing roughly 42 million barrels in floating storage at risk.

Tanker traffic has slowed sharply, with freight rates for large oil carriers rising three to five times after war-risk insurance was withdrawn.

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