China's 'Teapot' Refineries Help Bypass Iran Oil Crisis After US-Israel Strikes

China is using hundreds of small, independent oil refineries called 'teapot refineries' to keep oil flowing from Iran and Russia despite international sanctions and a Middle East crisis. The refineries, mostly located in Shandong province in towns like Weifang, have become essential to keeping China's economy stable.

The crisis began when the US and Israel struck Iran on February 28, unleashing chaos in the Middle East. Iran responded by effectively closing the Strait of Hormuz, a vital waterway that handles much of the world's oil shipments.

Beijing has allowed these private teapot refineries to import oil from both Russia and Iran, countries facing heavy Western sanctions. The Chinese government is also stockpiling its own official oil reserves and rerouting supplies to reduce dependence on Middle Eastern oil routes.

However, the strategy comes with costs. The teapot refineries have lost access to cheaper crude oil and now face much higher replacement prices in an already strained global market. China had prepared for a potential energy crisis like this for economic security reasons, but the situation shows how quickly global oil supplies can be disrupted.