China presses Iran not to block Strait of Hormuz, Bloomberg says
China is urging Iranian officials to avoid actions that could disrupt Qatari gas exports or other energy shipments through the Strait of Hormuz.
Source: Bloomberg, citing anonymous gas industry executives
Details: According to executives at state-owned companies who were briefed by officials, Chinese government representatives are pressuring senior Iranian officials to ensure Tehran does not attack oil and gas tankers transiting the Strait of Hormuz and instead allows shipments to continue.
China later called on all parties involved in the conflict around Iran to ensure safe passage for vessels through the strait. This is described as the most direct appeal so far from the Islamic Republic's main economic partner to safeguard trade via the waterway.
Tanker traffic through this key energy chokepoint has effectively halted after the United States and Israel launched a bombing campaign over the weekend, prompting retaliatory strikes by Iran across the region.
As the world's largest importer of oil and gas, China is among the most vulnerable countries. Although it holds significant reserves, nearly half of its crude oil imports in December passed through the strait.
"China urges all parties to immediately cease military operations, avoid escalating tensions and safeguard the safety of navigation in the Strait of Hormuz," Chinese Foreign Ministry spokeswoman Mao Ning said during a regular press briefing in Beijing on Tuesday.
China remains a crucial pillar for Iran as the buyer of the vast majority of Iranian oil. However, the world's second-largest economy depends on the broader Persian Gulf region for both oil and gas, with shipments of both requiring transit through this narrow waterway.
Background:
- Israel and the US struck Iran and Lebanon's Hezbollah on the morning of 28 February.
- Iran then attacked Bahrain and the United Arab Emirates and blocked the Strait of Hormuz, the main conduit of Middle Eastern oil supplies.
- As a result, the price of Brent crude jumped by 13% to above US$82 per barrel and oil markets are now bracing for prolonged volatility and persistent disruptions in the operation of the Strait of Hormuz.
- The Ras Tanura refinery in Saudi Arabia ceased operations following an Iranian drone attack.
- In the port of Bahrain, the US-flagged tanker Stena Imperative was attacked, sparking a fire on board, though no crew members were injured.
- Qatar has suspended liquefied natural gas production after two Iranian drones struck energy facilities operated by state-owned QatarEnergy.
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