Amid escalating tensions between Iran and the United States, global focus has shifted to the strategic Hormuz Strait, a critical maritime route through which a large share of the world’s oil supply passes. Concerns are mounting that any disruption in the passage could trigger a sharp rise in global fuel prices and energy instability.
Iran has reportedly claimed that the Hormuz Strait is not an international waterway but falls within its territorial jurisdiction, insisting that foreign vessels must obtain permission and pay transit fees for passage. The stance has raised serious concerns among major trading nations reliant on Gulf oil shipments.
China, a key importer of Gulf crude oil and traditionally an ally of Iran, has strongly opposed Tehran’s position. President Xi Jinping has reportedly urged Iran to ensure the strait remains open for uninterrupted global shipping, emphasizing that it serves as a vital international trade corridor essential for global economic stability.
Beijing’s concerns are largely driven by economic impact, as more than half of its crude oil imports originate from Gulf countries. Any disruption through Hormuz has already affected supply chains, increased industrial costs, and is estimated to pose up to a 1% risk to China’s economic growth, along with a sharp decline in trade volumes with Gulf nations.
Meanwhile, tensions intensified after reports of a US Navy strike on a cargo vessel traveling from China to an Iranian port, allegedly in violation of US sanctions. China has expressed serious concern over the incident and called on both nations to exercise restraint. At the same time, Beijing is accelerating efforts to diversify energy sources through Russian pipeline imports, Arctic shipping routes, strategic oil reserves, and investments in renewable energy.