China's 'Teapot Refineries' Shield It from Iran War Oil Shocks

• The ongoing Iran war and Strait of Hormuz tensions are causing global oil market upheaval and surging crude prices.
• China, despite being the largest buyer of Iranian oil, remains largely unaffected due to its unique 'Teapot Refineries' strategy.
• Teapot refineries are small, private Chinese units specializing in purchasing cheap, sanctioned crude oil from countries like Iran, Russia, and Venezuela.
• China built large oil stocks from these cheap imports, processing much of Iran's oil through these refineries, largely outside Western sanctions.
• Diversifying supply with cheap crude from Russia and Venezuela further strengthened China's energy security, mitigating global crisis impact.