China is holding discussions with Iran to secure safe passage for crude oil and Qatari liquefied natural gas vessels through the Strait of Hormuz as the U.S.-Israeli war with Tehran intensifies, according to three diplomatic sources, News.Az reports, citing Reuters.
The conflict, which entered its sixth day on Thursday, has effectively shut down the strategic shipping route, cutting many countries off from roughly one-fifth of global oil and liquefied natural gas supplies.
China, which maintains friendly relations with Iran and relies heavily on energy imports from the Middle East, is dissatisfied with Tehran’s move to disrupt shipping through the Strait. According to the sources, Beijing is urging Iranian authorities to permit safe transit for vessels carrying energy supplies.
The world’s second-largest economy receives about 45% of its oil imports through the Strait of Hormuz.
Ship-tracking data indicated that a vessel named Iron Maiden passed through the Strait overnight after changing its signal identification to “China-owner.” However, analysts say significantly more ship movements will be required to stabilize global markets.
Oil prices have risen by more than 15% since the conflict began, amid production disruptions and Iranian attacks targeting energy facilities in the Gulf as well as vessels crossing the Strait.
Iranian missile strikes have also reached locations as far as Cyprus, Azerbaijan and Turkey, adding to market volatility and prompting major economies to warn of potential inflation risks.
According to vessel-tracking firm Vortexa, crude tanker transits through the Strait dropped sharply to four vessels on March 1 — the day after hostilities erupted — compared with an average of 24 per day since January.
Data from Vortexa and ship-tracking service Kpler show that around 300 oil tankers remain inside the Strait.
Mike McDougall, a veteran of the sugar industry, told Reuters that executives in the Middle East sugar sector say some ships are still passing through the Strait, but these are primarily vessels owned by Chinese or Iranian companies.
Jamal Al-Ghurair, managing director of Dubai-based Al Khaleej Sugar, also confirmed that certain ships transporting sugar are currently allowed to pass through the Strait while others are not, though he did not provide further details.
Earlier this week, Iran’s government announced that vessels belonging to the United States, Israel, European countries and their allies would not be permitted to transit the Strait of Hormuz. The statement did not mention China.
