Beijing is calling for a restoration of energy flows through the Strait of Hormuz as shipping faces a second weekend of near-paralysis amid escalating tensions between Iran and the United States and Israel. The crisis underscores the strategic importance of the vital waterway, a chokepoint for over a quarter of the world’s seaborne oil, and highlights China’s complex position as a major energy importer with close ties to Tehran.
Whereas approximately half of China’s oil imports transit the Strait of Hormuz, according to multiple reports, the country appears less immediately vulnerable to supply disruptions than some of its neighbors. But, a prolonged closure would inevitably force China to draw upon its substantial strategic petroleum reserves and seek alternative sources, potentially impacting its economic growth. The situation is further complicated by reports that vessels are attempting to disguise their ownership to avoid targeting, with some even falsely claiming Chinese affiliation.
Chinese Foreign Ministry spokesperson Guo Jiakun stated Monday that “energy security is of paramount importance to the global economy, and all parties bear responsibility for ensuring stable and uninterrupted energy supplies.” Guo added that China “will take necessary measures to safeguard its own energy security,” deferring further details to the country’s “relevant authorities.” China has consistently advocated for unimpeded tanker access through the strait, citing its importance to global trade, and has been engaged in discussions with Iran regarding the resumption of safe oil passage, Reuters reported last week.
Despite these calls for de-escalation, Beijing has refrained from directly criticizing Tehran, instead repeatedly condemning the U.S.-Israeli offensive as a violation of international law. This stance reflects China’s broader geopolitical strategy of maintaining strong relationships with both Iran and countries in the Middle East, while also seeking to position itself as a mediator in regional conflicts. The Islamic Revolutionary Guard Corps has warned it could “set ablaze” Western tankers attempting to pass through the waterway, and at least 10 vessels have been attacked or targeted since fighting began, according to the South China Morning Post.
Ships Claiming Chinese Links
In an apparent attempt to mitigate the risk of attack, vessels navigating the Strait of Hormuz are increasingly altering their tracking data to indicate connections to China. According to data analyzed by Marine Traffic, ships are claiming to have an “all-Chinese crew” or listing “Chinese owner” as their destination. On Monday, the Panama-flagged cargo ship Guan Yuan Fu Xing safely traversed the strait after changing its destination signal to “CHINA OWNER” two days prior. The Liberia-flagged Sino Ocean broadcast a similar signal, identifying as “CHINA OWNER_ALL CREW” as it exited the strait on Saturday, having picked up cargo from the United Arab Emirates’ Mina Saqr port on March 5. Another bulk carrier, the Iron Maiden, changed its destination to “CHINA OWNER” on Thursday while navigating the waterway.
Ana Subasic, a trade risk analyst at Kpler, which owns Marine Traffic, noted that these changes “appear to be precautionary signals used by ships attempting to reduce the risk of being targeted,” but cautioned that they “does not always signal direct Chinese ownership.”
Oil Prices and Global Impact
The disruption to shipping through the Strait of Hormuz has already had a significant impact on global oil prices. Brent crude surged to nearly $120 per barrel on Monday, before settling between $101 and $107 per barrel in late trading. Sarah Emerson, a senior associate at the Center for Strategic and International Studies, analyzed that Iran currently holds approximately 155 million barrels of crude oil stored at sea, representing about 100 days of exports. However, she emphasized that Iran would eventually necessitate to replenish these stocks, a task made impossible by a continued closure of the strait or damage to Iranian oil infrastructure.
More than 200 tankers and commercial vessels, including over 50 Chinese-flagged ships, are currently reported to be waiting near the Strait of Hormuz due to the heightened security risks and soaring insurance premiums. The situation is further underscored by a recent incident involving a liquefied petroleum gas tanker, the Bogazici, which signaled it was Muslim-owned and Turkish in an attempt to avoid attacks while transiting the strait.
U.S. Response and Future Outlook
The United States is preparing to provide escort services for commercial vessels through the Strait of Hormuz, according to U.S. Energy Secretary Chris Wright, who stated Friday that the Navy would begin escort operations “as soon as it’s reasonable to do it,” without providing a specific timeline. The potential for direct U.S. Naval involvement adds another layer of complexity to the already volatile situation.
Looking ahead, the resolution of the crisis hinges on de-escalation between Iran and the U.S.-Israel alliance. China’s role will likely remain focused on advocating for a diplomatic solution and safeguarding its own energy interests. The coming days and weeks will be critical in determining whether the Strait of Hormuz can be reopened to normal traffic, or if the world faces a prolonged period of energy market instability.
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