Small Chinese refineries face trouble if their supply of cheap Iranian crude is restricted.

The conflict between Israel and Iran has already led to a sharp rise in global oil prices. Chinese refineries, long used to cheap Iranian crude supplies, are unlikely to escape the pain. China and Iran’s economic ties have grown closer in recent years, particularly since the two countries signed a 25-year comprehensive cooperation plan in 2021 — China is now Iran’s top trading partner, according to the Observatory of Economic Complexity, which monitors global commerce. Total China-Iran. 

By Dean Minello — June 22, 2025