Luhut fears China could lose oil supplies from Iran as the situation grows increasingly peculiar

JAKARTA — The chairman of the National Economic Council, Luhut Binsar Pandjaitan, says he is concerned that China may no longer be able to source oil from Iran if the conflict drags on. He made the remarks while discussing the impact of Iran’s war against Israel and the United States, which culminated in the closure of the Strait of Hormuz. ‘What I fear is that if this continues, China will not be able to obtain oil from Iran,’ Luhut said in a post on his personal Instagram on Thursday, 5 May 2026. He noted that China has long relied on oil supplies from Iran, Venezuela and Russia, and mentioned Venezuela’s recent tilt toward American influence following cases involving President Nicolas Maduro. ‘America wants to control everything,’ he said. ‘So this is a global strategic contest that we must watch closely, and its impact on the economy — including China’s — could also be hurt,’ he added. He warned that escalating global conflict would affect Indonesia, especially if oil prices rise. Luhut projected that world oil prices could inch toward USD 100 per barrel. Currently, prices are above the USD 70 per barrel assumption in the State Budget. ‘So this is what we must monitor. If this persists for a long time and oil prices rise, it will really require our close attention,’ he said. He urged the government to reassess oil import sources and the costs that the state would bear if supplies were redirected to other countries. ‘Would they come from African countries? But shipping by sea is another problem. So this must be scrutinised carefully,’ Luhut said. He also called for the formation of a dedicated task force to formulate a measurable energy resilience strategy. The Iran–Israel–United States conflict widened after Iran’s spiritual leader Ayatollah Ali Khamenei died as a result of an Israeli strike. Iran subsequently attacked United States military bases and intelligence offices in several Gulf states and closed the Strait of Hormuz on Saturday, 28 February 2026.