LONDON, March 5 (Reuters) – China is negotiating with Iran to secure safe passage for crude oil and Qatari liquefied natural gas (LNG) shipments through the Strait of Hormuz, sources told Reuters, as the US-Israel conflict with Tehran enters its sixth day.
The fighting has left the vital shipping lane largely closed, disrupting around a fifth of the world’s oil and LNG supplies. China, which maintains close ties with Iran and depends heavily on Middle Eastern energy, is reportedly pressing Tehran to allow uninterrupted passage for vessels, concerned about the paralysis of the Strait. Nearly 45% of China’s oil imports transit this key waterway.
Ship tracking data indicated that a tanker named Iron Maiden passed through the Strait overnight after changing its registration to “China-owner.” Experts note, however, that many more transits will be needed to stabilize global markets.
Crude oil prices have surged more than 15% since hostilities began, driven by halted production and Iranian attacks on energy infrastructure in the Gulf and shipping vessels traversing the Strait. Iranian missiles have also struck as far as Cyprus, Azerbaijan, and Turkey, further unsettling markets and raising inflation warnings from major economies.
According to Vortexa vessel-tracking data, tanker transits through the Strait dropped to just four on March 1, down from an average of 24 per day in January. Around 300 oil tankers remain stranded within the passage, Vortexa and Kpler data show.
Some commercial activity continues. Sugar industry veteran Mike McDougall said Middle East sugar executives reported that a few ships are transiting the Strait, primarily Chinese or Iranian-owned. Jamal Al-Ghurair, managing director of Dubai-based Al Khaleej Sugar, confirmed that some sugar shipments are currently allowed through while others are blocked.
Earlier this week, Iran’s government announced that vessels from the United States, Israel, European countries, and their allies would not be permitted to pass through the Strait, without mentioning China, leaving room for potential exemptions for Chinese-flagged shipments.