US-China Strategic Reserves Key to Containing Mideast Oil Shock

A potential military confrontation between the US and Iran could disrupt Middle East oil supplies, but the US and China hold significant strategic reserves that could help contain any shock.

The Strait of Hormuz is a critical shipping lane for global oil trade, with around 20 million barrels per day (bpd) of crude and refined products passing through it. Disrupting this supply chain would have severe consequences for the global economy.

The US Strategic Petroleum Reserve (SPR) has capacity to cover roughly 200 days of net crude imports, while China's stockpiling of oil reserves is estimated to total as much as 1.3 billion barrels, more than four months of imports.