Recent US government data has highlighted China’s significant oil reserve accumulation as tensions rise in Iran. According to the US Energy Information Administration (EIA), China concluded 2025 with approximately 1.4 billion barrels of oil in reserve, surpassing the combined reserves of the 32 International Energy Agency (IEA) member countries, which hold about 1.2 billion barrels, inclusive of 413 million barrels in the US.
While the US has been reducing its own reserves, recent figures indicate it currently holds around 405 million barrels, following a release of over 8 million barrels in early April. The Chinese reserves have seen an impressive increase, with estimates suggesting that China added an average of 1.1 million barrels daily to its strategic inventory in 2025. Preliminary data also suggests this accumulation trend continued into 2026.
China’s heavy reliance on imported crude oil makes it uniquely vulnerable to global fluctuations and geopolitical tensions. The data illustrates how China has established a substantial strategic buffer amid ongoing energy disruptions particularly through the Strait of Hormuz, which remains largely blocked, as noted by President Trump.
As China aggressively expanded its reserves in 2025, the US made only minor additions in response to high prices influenced by the conflict in Iran. Plans to release an additional 172 million barrels from US reserves have been initiated to manage these prices.
In a related development, China holds a competitive edge in clean energy technology, with the IEA reporting that it dominates the global supply chain for solar panel and lithium-ion battery production, controlling about 85% and 80% of these capacities, respectively.
This scenario highlights China’s strategic approach to enhancing its energy security, positioning itself advantageously in both traditional oil reserves and emerging clean energy markets.
