Chris Wright expects China to increase US oil purchases amid Iran conflict

US Energy Secretary Chris Wright thinks China is about to start buying a lot more American oil. The reason is straightforward: when your usual supplier is in the middle of an armed conflict, you find a new one.

Wright told CNBC he expects China to purchase “growing amounts of US oil” as the US-Israeli conflict with Iran disrupts traditional Middle Eastern supply chains.

The Strait of Hormuz problem

Roughly 20% of the world’s oil flows pass through the Strait of Hormuz. When there’s a military conflict involving the country on one side of it, shippers get nervous.

Wright emphasized the need for free flow through the Persian Gulf and called for an end to Iran’s nuclear program. He suggested a resolution could come relatively soon.

China has historically been one of Iran’s biggest crude customers, importing up to 1.2 million barrels per day through discounted channels despite US sanctions. If that supply gets disrupted or becomes too politically risky to maintain, China needs to replace those barrels from somewhere. Wright is betting that somewhere is the United States.

The crypto angle: crisis capital and sanctions-resistant assets

Previous supply shocks in the Middle East have correlated with increased Bitcoin prices and higher stablecoin transaction volumes. When sovereign risk rises and currency management becomes more fraught, demand grows for assets that can move across borders without relying on correspondent banking networks.

If Beijing is forced to pay market price for American crude instead of discounted Iranian barrels, the cost differential has to come from somewhere. That puts additional pressure on China’s trade balance and, by extension, on the yuan. Historically, periods of yuan weakness have coincided with increased crypto activity among Chinese-linked wallets and OTC desks, even as domestic crypto trading remains officially banned.

Tokens linked to commodities also tend to see renewed interest during energy crises. When investors want exposure to real assets but don’t want to deal with futures contracts and storage logistics, tokenized commodity products become an appealing middle ground.

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