China’s decision to draw on its strategic oil reserves has helped limit pressure on global oil markets after the Strait of Hormuz was closed, according to the report published on August 21, 2026. Six months after the closure, an estimated 10 to 14 percent of global oil supplies still cannot reach the market, yet oil-market volatility has remained lower than in several previous Middle East crises.

Before the war, about 20 million barrels of oil a day passed through the strait, roughly one-fifth of global daily consumption. International oil prices have risen about 50 percent in the current crisis, with Brent crude increasing from around $60 a barrel at the start of the year to a stable range of about $85 to $90.

The report contrasts the situation with the 1973 Arab oil embargo, when a 7 percent supply disruption was followed by a near fourfold price increase. Supply disruptions of 6 to 7 percent during the 1979 Iranian Revolution and Iraq’s 1990 invasion of Kuwait also drove prices to more than double. China has avoided buying large additional volumes of crude, preventing extra demand from adding market pressure.