Big Take Asia War in Iran Is Exposing Oil Risks Across Asia
11 snips
Mar 5, 2026 
Fereidun Fesharaki, founder of FGE and oil markets expert. Daniel Ten Kate, Bloomberg reporter covering Asia and geopolitics. They map how Strait of Hormuz shutdowns, attacks on oilfields, and China's exposure could trigger supply shocks. Discussion covers which Asian economies are most vulnerable, strategic reserves, and how US-China diplomacy shapes energy risks.
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China's Oil Exposure Hinges On Hormuz Transit
- China is highly exposed because about half of its crude imports transit the Strait of Hormuz.
- Beijing buys ~90% of Iran's oil but those barrels are under 15% of China’s total imports, so China can substitute suppliers though at market prices.
Iran Oil Mostly Flows To Teapots Not Big Chinese Refineries
- Iran's overall production matters but its crude sales mainly flow to China via smaller independent refiners called teapots.
- Fereidun Fesharaki notes major Chinese refiners avoid Iranian crude to stay clear of U.S. sanctions, limiting Iran's buyers to teapots.
Watch For Oilfield Strikes Or A Monthlong Hormuz Closure
- Monitor two clear triggers for dramatic oil spikes: attacks on oilfields and prolonged Hormuz closures.
- Fereidun Fesharaki warns hitting oilfields or closing Hormuz >1 month could push prices $100+ per barrel quickly.