US Secretary of State Marco Rubio has called on China to intervene and prevent Iran from closing the Strait of Hormuz, one of the world’s most vital shipping lanes for oil exports. His remarks followed a report from Iran’s state-run Press TV claiming that parliament had approved a proposal to shut the Strait. However, the final decision rests with the country’s Supreme National Security Council. Roughly 20% of the world’s oil supply passes through the Strait of Hormuz, with major oil and gas producers in the Middle East depending on this route to export energy. Any disruption could trigger significant volatility in global markets. Oil prices surged in response to the recent US strikes on Iranian nuclear sites, with Brent crude reaching its highest level in five months. The benchmark price rose to $81.40 a barrel early Monday before settling around $78 — a 1.4% gain on the day. Speaking to Fox News on Sunday, Rubio urged Beijing to use its influence over Tehran. “I encourage the Chinese government to call them [Iran] about that, because they heavily depend on the Strait of Hormuz for their oil,” Rubio said.
“If they [close the Strait], it will be economic suicide for them. And while we retain options to deal with that, other countries should be paying attention too — it would damage their economies even more than ours.” China is the world’s largest buyer of Iranian oil. According to ship-tracking data from Vortexa, Chinese imports of Iranian crude surpassed 1.8 million barrels per day last month. Other major Asian economies — including India, Japan, and South Korea — also rely heavily on oil shipments passing through the Strait. Energy analyst Vandana Hari told BBC News that Iran has “little to gain and too much to lose” by blocking the Strait. “It risks alienating its oil and gas-producing neighbors in the Gulf and provoking anger from key trade partners like China,” she said.
Meanwhile, Saul Kavonic, head of energy research at MST Financial, noted, “The US now has an overwhelming defensive posture in the region, ready for any potential Iranian counter-attacks. However, the danger remains that the situation could escalate, putting further pressure on oil prices.”
The price of crude oil affects a wide range of consumer costs — from fuel at gas stations to the price of food and other essentials. With tensions high and the possibility of disruption looming, markets and governments worldwide are closely monitoring developments in the region.
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