China Cushioned Iran Oil Shock By Draining Reserves, While Americans Get $4 Gas
China appears to have cushioned its oil shock from the Iran war by using reserves it spent years building — while America's emergency stockpile sits at its lowest level in 44 years.
Simon August · Sep 3, 2026 · 6 min read
China appears to have cushioned its oil shock from the Iran war by using reserves it spent years building — while America’s emergency stockpile sits at its lowest level in 44 years.
About 60% of China’s drop in oil imports reflected a shift from stockpiling crude to drawing down reserves, while weaker demand accounted for the remainder, according to an analysis published Thursday by the Centre for Research on Energy and Clean Air. In contrast, the U.S. Strategic Petroleum Reserve (SPR) held 286.6 million barrels the week ending Aug. 28, its lowest level since November 1982, after President Donald Trump released 172 million barrels in March on top of roughly 300 million barrels that were sold under President Joe Biden.
Since Aug. 1, national average U.S. gasoline prices have exceeded $4 a gallon every day.
“China was the swing influencer in this disruption, the tale of two SPRs,” Stu Turley, president and CEO of Sandstone Group and host of the Energy News Beat podcast, told the Daily Caller News Foundation.
Turley said China tapped its reserves rather than buy oil and then cut demand. The U.S., he said, sold reserve barrels to Japan and other countries.
“The foresight of the [Chinese President] Xi Jinping government to create the country’s massive strategic reserve enabled China to take that action,” David Blackmon, a 40-year oil and gas industry veteran and energy writer, told the DCNF. “Unfortunately, the U.S. didn’t have quite the same luxury.”
AAA listed the national average for regular gasoline at $4.14 per gallon Thursday, up from $2.98 two days before the war began. Brent crude rose 1.1% to $96.72 a barrel Thursday as the Iran war intensified, the Associated Press reported.
“Pain at the pump will remain through 2027 and we are seeing the highest crack spreads in history,” Turley said. He added that only two things could ease gas prices: more refining throughput or demand destruction.
The White House referred the DCNF to the Department of Energy (DOE) when asked for comment. The DOE, the America First Policy Institute, and CREA did not immediately respond to the DCNF’s requests for comment.