China left in a dire strait after US strikes on Iran
Tehran’s threat to close the critical waterway of the Strait of Hormuz sends shockwaves through Beijing
China appears to be scraping the bottom of an oil barrel after the United States and Israel bombed Iran’s nuclear sites at the weekend. Concerns are growing in Beijing after Tehran threatened to close the Strait of Hormuz.
At least 20% of crude passes through this critical waterway, including 90% of Iran’s oil production heading towards the world’s second-largest economy.
It has become a source of cheap energy for China, with the Communist Party regime ignoring Washington’s sanction on Iranian crude exports. Strikes by the US have shattered that illusion and triggered a diplomatic backlash.
China’s United Nations Ambassador Fu Cong condemned the attack. He called on US President Donald Trump to show restraint to “prevent the situation from escalating,” instead of adding “fuel to the fire,” official broadcaster CCTV reported.
State-run Global Times went even further. “[This] only deepens regional hatred and trauma, [while the] false logic behind US coercion by force runs counter to peace,” the nationalistic tabloid stated in an editorial on Monday.
Chinese refineries are unlikely to escape the pain.
The Wire China
Road to confrontation:
- Trump confirmed that Iran’s main nuclear facilities had been “obliterated.”
- Fourteen bunker-buster bombs and clusters of Tomahawk missiles were used.
- More than 125 military aircraft also took part in the operation.
- Washington has accused Iran of using the sites for its nuclear weapons program.
Delve deeper: “In 2024, 84% of the crude oil and natural gas liquids passed through [the Strait of Hormuz] destined for Asian countries including China, India and Japan,” Sanjoy Paul, of Sydney’s University of Technology, wrote in a Conversation commentary.
Between the lines: Beijing will certainly feel the ‘Iran shock’ if fellow BRICS+ member Tehran tries to block shipping from entering and leaving the vital waterway.
Bottom line: “Chinese refineries, long used to cheap Iranian crude supplies, are unlikely to escape the pain. Economic ties have grown closer in recent years, [with Beijing] now Iran’s top trading partner,” The Wire China reported on Monday.
China Factor comment: President Xi Jinping’s administration has built up massive oil and gas stockpiles over the years. But as tensions rise in the Gulf states and the broader Middle East, China’s export machine risks being hit amid sluggish domestic demand.