{"id":48333,"date":"2026-03-03T04:36:26","date_gmt":"2026-03-03T04:36:26","guid":{"rendered":"https:\/\/www.vtmarkets.com\/uncategorized\/societe-generale-analysts-say-china-can-manage-u-s-iran-oil-tensions-despite-iran-supplying-most-imports\/"},"modified":"2026-03-03T04:36:26","modified_gmt":"2026-03-03T04:36:26","slug":"societe-generale-analysts-say-china-can-manage-u-s-iran-oil-tensions-despite-iran-supplying-most-imports","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/live-updates\/societe-generale-analysts-say-china-can-manage-u-s-iran-oil-tensions-despite-iran-supplying-most-imports\/","title":{"rendered":"Societe Generale analysts say China can manage U.S.\u2013Iran oil tensions, despite Iran supplying most imports"},"content":{"rendered":"Following the US attack on Iran in June 2025, Iran\u2019s average shipments to China accounted for 94% of Iran\u2019s total oil exports. The UAE and Iraq made up the remaining exports.\n\nIran ships almost all its oil to China, which prefers to avoid long disruptions. China\u2019s energy security approach includes supply diversification, stockpiling, and demand substitution through electrification.\n\n<h3>China Energy Security After June 2025<\/h3>\nThe Strait of Hormuz supplies around 50% of China\u2019s total oil imports. China has built roughly 1.5 billion barrels of strategic petroleum reserves, enough to cover around 200 days of oil imports.\n\nChina can manage disruptions by drawing down reserves and using Russian supply. It is expected to criticise US militarisation in the Middle East, while not intervening directly in the near term.\n\nFollowing the US-Iran tensions in June 2025, the market has now had time to assess China&#8217;s energy security, which appears more robust than initially feared. China\u2019s strategic petroleum reserves, which we still estimate at over 1.2 billion barrels, have created a significant buffer against price shocks. This large cushion has consistently tempered upside volatility in crude oil over the last several months.\n\nThe flow of Russian oil to China, a trend that accelerated after the events of last year, has proven to be a key stabilizing factor. Recent shipping data confirms that Russia remains China&#8217;s top supplier, with seaborne exports holding strong at nearly 2 million barrels per day through January and February of this year. This steady, diversified supply chain away from the Strait of Hormuz means traders should be wary of overreacting to minor regional headlines.\n\n<h3>Implications For Oil Volatility And Positioning<\/h3>\nIn the coming weeks, this underlying stability suggests that implied volatility on crude options may be inflated during any periods of tension. History shows that after the initial shock of an event, such as the one in early 2022, volatility tends to decline as the market adapts to the new reality. Therefore, derivative strategies that benefit from range-bound price action or falling volatility, like selling covered calls on existing long positions, could be prudent.\n\nOur immediate focus must be the planned meeting between Presidents Trump and Xi in April, which is a major potential catalyst. Any unexpected announcements on energy policy or sanctions could swiftly disrupt the current market calm. Traders should consider using low-cost options to hedge against a surprise outcome from that summit, as it represents the most significant known event risk on the horizon.\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\n\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsmy.com\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>After June 2025 US strikes, Iran sent 94% of exports to China; Beijing relies on reserves.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-48333","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/48333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=48333"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/48333\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=48333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=48333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=48333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}