Sofia, Bulgaria – China is actively engaged in diplomatic efforts to ensure the continued flow of oil and liquefied natural gas (LNG) through the Strait of Hormuz, a critical waterway for global energy supplies. This comes amid heightened tensions and Iranian threats to disrupt shipping in the region, raising concerns about potential disruptions to China’s energy imports. The situation underscores China’s complex relationship with Iran, balancing economic dependence with strategic interests in maintaining stable energy access.
The Strait of Hormuz, located between Oman and Iran, is a narrow chokepoint through which approximately 31% of all seaborne crude oil and 20% of global LNG exports passed in 2025, according to energy consulting firm Kpler. A prolonged closure would have significant repercussions for the global economy, particularly for Asian nations heavily reliant on Middle Eastern energy sources.
China’s Economic Leverage and Diplomatic Pressure
China’s concern stems from its substantial dependence on Middle Eastern oil and LNG. However, Iran is as well heavily reliant on China, with over 80% of its sanctioned oil exports going to Chinese refiners. This economic interdependence provides China with a degree of leverage in its dealings with Tehran. Chinese officials are reportedly urging Iran to refrain from actions that could disrupt energy flows, including attacks on tankers and mining the Strait.
According to anonymous senior executives at Chinese state energy firms who spoke with Bloomberg, China is directly pressuring Iranian officials to guarantee safe passage for oil and LNG cargoes. This pressure is being applied despite China’s official statements on the broader conflict remaining relatively restrained, primarily focusing on calls for de-escalation. Chinese Foreign Minister Wang Yi recently spoke with Iranian Foreign Minister Abbas Araghchi, emphasizing the importance of maintaining social stability and considering the concerns of neighboring countries.
Iranian Threats and Conflicting Reports
The current crisis was triggered by Iranian statements threatening to close the Strait of Hormuz. On Monday, Ebrahim Jabbari, a senior advisor to the Commander-in-Chief of the Islamic Revolutionary Guard Corps (IRGC), claimed the Strait was already closed and warned that any ship attempting to transit the waterway would be attacked. Jabbari reportedly stated that Iran would “attack and set ablaze any ship attempting to cross.”
However, the U.S. Central Command has denied these claims, stating that the Strait of Hormuz remains open. A senior U.S. Military official suggested that Iran is unlikely to mine the Strait, given its own reliance on the waterway for oil exports. Despite this assessment, energy flows have already been disrupted, with tankers diverting away from the Strait, leading to record-high freight rates for supertankers bound for China and insurers ending war risk coverage for vessels transiting the area. Qatar has also halted LNG production following drone attacks on its facilities at Ras Laffan Industrial City and Mesaieed Industrial City.
Impact on Global Energy Markets and Asian Economies
The escalating tensions are sending shockwaves through global energy markets. Brent crude oil prices have risen nearly 10% since the outbreak of the conflict, reaching around $80 per barrel as of March 3, 2026. Analysts predict that a prolonged closure of the Strait could push oil prices above $100 per barrel.
The impact will be particularly acute in Asia, with countries like Thailand, India, South Korea, and the Philippines being the most vulnerable due to their high import dependence on Middle Eastern energy. Malaysia, as an energy exporter, is expected to be relatively less affected. The disruption to LNG supplies also poses a significant challenge for Asian economies reliant on Qatari gas.
U.S. And Chinese Strategic Interests
While China is focused on securing its energy supplies, the United States is also closely monitoring the situation. President Donald Trump has hinted at potentially deploying the Navy to protect trade routes in the region. The U.S. And China, despite ongoing trade and geopolitical competition, share a common interest in maintaining stability in the Middle East to ensure the uninterrupted flow of energy. Trade and economic ties continue to bind the two nations, even as they navigate complex geopolitical challenges.
China’s public statements have largely focused on criticizing the U.S. And Israeli actions in Iran, framing them as violations of international law and UN Security Council resolutions. Liu Pengyu, spokesperson for the Chinese embassy in Washington, stated that the strikes “have no UN Security Council authorization and violate international law.” However, analysts suggest that China’s primary concern is preserving its own global stake, particularly its access to vital energy resources.
The Role of Diplomacy
Chinese Foreign Minister Wang Yi has been actively engaged in diplomatic efforts, holding phone conversations with his counterparts from Iran, France, and Oman to coordinate potential responses to the crisis. He also reportedly attempted to coordinate emergency UN Security Council responses with Russian Foreign Minister Sergei Lavrov. These diplomatic initiatives highlight China’s attempt to play a mediating role and prevent further escalation.
The situation remains fluid and unpredictable. The next key development to watch will be the anticipated meeting between Chinese President Xi Jinping and U.S. President Donald Trump in the coming weeks. The outcome of that meeting could significantly influence the trajectory of the crisis and the future of energy flows through the Strait of Hormuz.
Key Takeaways:
- China is exerting diplomatic pressure on Iran to keep the Strait of Hormuz open to ensure continued energy supplies.
- Iranian threats to close the Strait have disrupted energy flows and driven up oil prices.
- Asian economies are particularly vulnerable to the impact of a prolonged closure.
- The U.S. And China share a common interest in maintaining stability in the region, despite broader geopolitical tensions.
What we have is a developing story. We will continue to provide updates as new information becomes available. Share your thoughts and perspectives in the comments below.