China Warns Israel of Oil & LNG Interests

China Warns Israel of Oil & LNG Interests

June 22 2025

China issues warning to its citizens in Israel

ISTANBUL 

China on Monday issued a warning to its citizens in Israel amid ongoing missile strikes between Tel Aviv and Iran.

The Chinese Embassy in Israel “once again reminds Chinese nationals in the country to closely monitor ongoing developments and strictly follow safety alerts and emergency instructions issued by the relevant Israeli authorities,” China's state-run daily Global Times reported.

“Currently, three land border crossings between Israel and Jordan remain open: the Jordan River Crossing, the Allenby Bridge, and the Yitzhak Rabin crossings.

“Travelers may proceed to these points at their own discretion, provided it is safe to do so,” the report added.

The warning came amid the ongoing air strikes between Israel and Iran, initiated by Tel Aviv last Friday.​​​​​​​

According to the Iranian Health Ministry, at least 128 people were killed and 900 others injured since the Israeli attacks started on Friday.

Israeli authorities have said at least 13 people were killed and more than 370 others injured in Iranian missile attacks.

Last Wednesday, China urged its citizens in Israel to avoid working in West Bank settlements and East Jerusalem, warning that employment in these “sensitive regions” violates labor agreements and amounts to illegal employment.

Workers in such areas, it added, would be considered in breach of contract and ineligible for consular assistance.

China warns against ‘use of force’. What Beijing said

Earlier this week, Chinese President Xi Jinping stated Beijing was "deeply worried" about Israel's military strikes against Iran.

Amid the escalating tensions between Israel and Iran, China has warned the United States against the “use of force" as US President Donald Trump mulls American intervention.

Speaking at a press briefing, Guo Jiakun, spokesman for the Chinese foreign affairs ministry, said any use of force from the US would be seen as an infringement of Iran's sovereignty and security. Follow LIVE updates on Iran Israel tensions here

"China opposes any act that... infringes upon the sovereignty, security and territorial integrity of other countries, and opposes the use or threat of use of force in international relations", he told reporters. 

Where does China stand on the Iran-Israel conflict? 

Earlier this week, Chinese President Xi Jinping stated Beijing was "deeply worried" about Israel's military strikes against Iran.

Speaking on the sidelines of a summit with five Central Asian nations in Kazakhstan, the Chinese president called for an "urgent de-escalation."

"All parties should work to de-escalate the conflict as soon as possible and prevent the situation from worsening further," Xi was quoted as saying by Chinese state broadcaster CCTV.

He added that China was ready to play a "constructive role" in restoring peace and stability to the region.

"China calls on all relevant parties, especially those countries that have a special influence on Israel, to shoulder their due responsibilities, take immediate measures to cool down the tense situation and prevent the conflict from escalating and spreading," stated Guo in another press briefing, without naming any countries.

US intervention on the brink? 

China's latest statement comes after US president Donald Trump stated he would be mulling over strikes against Iran. The United States has been a primary ally for Israel for decades, and its support has only increased after the outbreak of the war in Gaza in October 2023. 

Speaking to reporters at the White House, Trump delivered a mixed message regarding Iran and stated that he “may or may not” order strikes against Iran. Adding that he has “run out of patience,” Trump has called on Iran to step back from the conflict.  

Trump creates tariff firewall against China, its companies turn attention to Brazil

China’s energy strategy faces disruption as Israel’s strikes on Iran threaten key oil supply routes. With US trade tensions rising, Chinese firms are pivoting to Brazil while Beijing accelerates its push for energy self-sufficiency. Analysts warn the conflict could weaken China’s regional influence and diplomatic ambitions.

China’s decades-long push to secure energy dominance through partnerships with Iran is facing a major test as the Israel-Iran war threatens to choke Beijing’s oil supply lines and disrupt its regional ambitions. The fallout, combined with escalating trade tensions with Washington, is prompting a reorientation of Chinese corporate interests toward markets like Brazil, according to a report by the Financial Times.

Chinese President Xi Jinping this week urged restraint from all sides in the escalating Middle East conflict, while also criticising US interference in China’s trade with Iran. Yet, concerns in Beijing are mounting as Israel continues to target Iranian oil and nuclear facilities. Analysts say this not only jeopardises China’s access to cheap Iranian crude but also threatens its broader diplomatic and energy strategy in the region.

“If this situation continues to escalate, then they lose quite a bit, both in terms of their energy security and Iran as a strategic card that China holds,” said Gedaliah Afterman of Israel’s Abba Eban Institute, speaking to FT.

Iran has become a vital energy partner for China, particularly since US-led sanctions intensified in 2018. China buys the bulk of Iran’s oil exports—reaching as much as 1.6 million barrels a day at its peak in 2024—and supplies Tehran with essential goods, including electronics, vehicles, and even nuclear equipment. But Iranian shipments to China dropped to 740,000 barrels a day by April, driven by fears of further sanctions and intensifying regional instability

The risk of an Iranian blockade of the Strait of Hormuz—through which billions of dollars in Gulf oil flows to China adds to Beijing’s anxiety. While some Chinese analysts say OPEC+ producers may fill the gap in a worst-case scenario, any broader disruption would drive up prices and hit China’s energy security.

China’s reliance on Gulf suppliers is significant. Besides Iran, Saudi Arabia is its largest oil provider outside Russia. In natural gas, over a quarter of China’s LNG imports last year came from Qatar and the UAE. Even with long-term contracts, Chinese importers may be forced to turn to the spot market at higher costs if the regional crisis widens.

The FT report also highlights that President Xi’s broader strategy of energy self-sufficiency may now accelerate. China is already the world’s top user of oil, but under Xi, it has embarked on a massive renewable push. Solar and wind now make up 56% of total electricity power plant capacity, up from a third ten years ago.

“This crisis will only make Beijing double down,” said Neil Beveridge of Bernstein Research. “If it wasn’t happening fast enough before, it will be happening even faster now.”

At the same time, the US-China rivalry continues to simmer. Former President Donald Trump has moved to harden trade restrictions on Beijing, creating what analysts describe as a “tariff firewall.” Facing mounting pressure, many Chinese firms are increasingly eyeing Brazil as an alternative trade partner and investment destination, particularly in sectors like agriculture, green energy, and critical minerals.

Beijing’s broader diplomatic ambitions in the Middle East have also taken a hit. China’s influence surged with its mediation of the 2023 Saudi-Iran deal and its 25-year cooperation pact with Tehran. But analysts were quoted by FT as highlighting its role as a neutral broker has been diminished by the latest conflict and its cautious response.

“The demise or the collapse of the Iranian system or the Iranian power as we knew it is not good news for China,” Yun Sun of the Stimson Center told FT. “That indirectly means that American influence has expanded.”

Experts echoed that for Beijing, the Israel-Iran war is a stark reminder of the vulnerability in its foreign energy bets and the geopolitical limits of its global aspirations.