U.S. Treasury Secretary Scott Bessent stated on Thursday that China will likely work behind the scenes to help reopen the Strait of Hormuz, which has been blockaded by Iran since early March. According to Reuters, Bessent believes it is in China's best interests to facilitate the reopening of this critical waterway.
Key Takeaways
U.S. Treasury Secretary Scott Bessent stated that China will likely work behind the scenes to help reopen the Strait of Hormuz, which has been blockaded by Iran since early March. The blockade has caused significant disruptions in global energy supplies.
- U.S. Treasury Secretary Scott Bessent believes China will act to reopen the Strait of Hormuz.
- China is a major importer of Iranian crude oil and has a vested interest in reopening the strait.
- President Donald Trump and Chinese President Xi Jinping agreed that the Strait of Hormuz must remain open during their meeting in Beijing.
- Iran has blockaded the strait since early March, causing global energy supply disruptions.
- The blockade has led to increased fuel prices and disrupted oil tanker movements.
The blockade has caused significant disruptions in global energy supplies and raised fuel prices as oil tankers remain unable to pass through, according to Al Jazeera. The Strait of Hormuz is a key route for about 20% of the world's crude oil. Iran has all but closed the strait since early March, causing disruptions to global energy supplies and raising fuel prices as oil tankers remain unable to pass.
President Donald Trump held talks with Chinese President Xi Jinping during a two-day summit in Beijing on Thursday. A White House official said the leaders agreed that Hormuz needs to reopen. CNBC reported that Bessent told CNBC's Joe Kernen, "It's very much in their interest to get the strait reopened." China is the largest crude oil importer in the world, with about 10% of its imports coming from Iran and more than half from the Middle East.
Meanwhile, tensions continue as Iran has blockaded the strait since early March in response to U.S. and Israeli airstrikes that killed many of its leaders, including its head of state Ayatollah Ali Khamenei. The blockade has cut off Persian Gulf oil exports to the global market, triggering the biggest supply disruption in history.
Despite these challenges, there have been some movements through the strait under special agreements. According to Al Jazeera, about 30 vessels had transited through the strait since Wednesday evening. However, the U.S. has redirected 70 vessels and disabled four others to enforce Trump's blockade on ships traveling to or from Iranian ports through the Strait of Hormuz.
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