Why hasn't the global oil market experienced a meltdown despite Iran closing the Strait of Hormuz for nearly 100 days?

According to Javier Blas, two main factors have prevented a global oil market meltdown: first, European and Asian nations have been drawing heavily on their oil stockpiles; second, China has significantly cut its oil imports—from about 11 million barrels per day to roughly 6.5 million barrels per day, a 10-year low and even lower than during the Covid pandemic—thereby absorbing massive supply-side pressure and averting a global economic shock.

What is the significance of China’s sharp reduction in oil imports amid the Iran conflict?

China’s import cut—from 11 million to 6.5 million barrels per day—is described by Javier Blas as a '10-year low' and unprecedented in scale, occurring without official explanation; because oil tankers are large and easily tracked, industry experts confirm the drop is real, and its effect has been to relieve enormous pressure on global oil prices and the broader economy—so much so that some in the oil market view it as 'Beijing bailing out' Donald Trump, though motivations remain unknown and unacknowledged by Chinese authorities.

Oil Markets Avoid Meltdown Despite Iran Conflict as China Cuts Imports

Jun 5, 2026

Bloomberg analyst Javier Blas explains why oil markets avoided predicted meltdown during the Iran conflict, citing strategic stockpiles and a 10-year low in Chinese oil imports preventing price spikes.

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