China inspects strategic reserves amid Hormuz crisis

Chinese Premier Li Qiang inspected strategic oil reserves and grain stockpiles in Zhoushan and Ningbo in eastern Zhejiang province this week, as China accelerates efforts to protect its economy from the ongoing disruption to global supply chains caused by the US-Israel war on Iran. The visit comes as the conflict enters its fourth month, having effectively closed the Strait of Hormuz, a vital shipping lane through which roughly 35 percent of China's oil consumption passes, according to Barclays Research. Li called for the accelerated construction of commodity distribution hubs and emphasized maintaining adequate reserves of essential materials, stating that such measures are critical for economic and social stability. The Hormuz crisis has destabilized global energy markets, with oil prices surging in response to renewed hostilities. Brent crude climbed 2.1 percent to $96.29 per barrel and US West Texas Intermediate futures rose 2.4 percent above $90 after the US and Iran exchanged fresh missile strikes Thursday, threatening a fragile ceasefire. Analysts warn that prices are unlikely to return to the $60-70 range seen before the conflict, with markets pricing in a "clear risk premium" for the sustained risk of escalation. Iranian officials have reportedly begun charging tolls for vessels passing through the Strait since the April ceasefire agreement. Meanwhile, China's Ambassador to Israel Xiao Junzheng described the May 14-15 summit between President Xi Jinping and US President Donald Trump as "historic" and "landmark," insisting Beijing has been urging Iran to moderate its behavior and respect freedom of navigation through the strategic waterway. However, reports indicate Trump departed Beijing with few concrete wins on either trade or Iran policy. China remains Iran's largest oil customer and maintains extensive economic ties with Tehran, leading some critics to argue Beijing possesses more leverage over the Islamic Republic than it publicly admits. Xiao acknowledged the difficulty of influencing Iran, describing it as "another ancient civilization" that is "very proud of its history."