China presses Iran to allow safe passage for oil, LNG ships through Strait of Hormuz

China is in talks with Iran to allow crude oil and Qatari liquefied natural gas (LNG) vessels safe passage through the Strait of Hormuz as the war between the United States, Israel and Tehran intensifies, Reuters reported on Thursday, citing diplomatic sources.

The conflict, which entered its seventh day on Friday, has effectively paralysed one of the world’s most critical maritime routes, disrupting global energy flows. The narrow waterway handles roughly a fifth of global oil and liquefied natural gas supplies, making it a crucial artery for international energy markets.

China, the world’s second-largest economy, relies heavily on Middle Eastern energy imports and is said to be pressing Tehran to ensure Chinese-linked vessels can safely pass through the chokepoint. The report said Beijing has expressed concern that Iran’s restrictions on shipping could further destabilise global markets and threaten its own energy security.

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About 45 per cent of China’s crude oil imports pass through the Strait of Hormuz, making uninterrupted access vital for the country’s industrial economy.

Ship-tracking data suggests that limited traffic has begun to resume under special circumstances. A vessel named Iron Maiden reportedly crossed the strait overnight after altering its signal to indicate it was “China-owned,” although analysts say far more sailings will be needed to stabilise energy markets.

Oil prices have surged more than 15 per cent since the conflict began, driven by supply disruptions and concerns about further attacks on energy infrastructure. Iran has reportedly targeted oil and gas facilities across the Gulf region as well as vessels attempting to transit the strategic waterway.

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The escalation has also had broader geopolitical repercussions. Iranian missiles have reportedly reached as far as Cyprus, Azerbaijan and Turkey, heightening tensions and triggering warnings from major economies about rising inflation risks driven by energy prices.

Shipping activity in the strait has plummeted since the fighting began. According to vessel-tracking data from analytics firm Vortexa, crude tanker transits fell to just four vessels on March 1 — the day after hostilities erupted — compared with an average of 24 per day since January.

Roughly 300 oil tankers are currently stranded within the strait, according to data from Vortexa and ship-tracking firm Kpler, underscoring the scale of the disruption.

According to the report the vessels still moving through the waterway appear to have strong ties to China or Iran. Mike McDougall, a veteran in the global sugar industry, told Reuters that Middle Eastern sugar executives have observed a limited number of ships transiting the strait, most of which are Chinese or Iranian-owned.

Jamal Al-Ghurair, managing director of Dubai-based Al Khaleej Sugar, said some ships carrying sugar cargoes have been allowed to pass through the strait while others remain blocked, although he did not provide details on the criteria.

Earlier this week, Iran said vessels belonging to the United States, Israel, European countries and their allies would not be allowed to transit the Strait of Hormuz. The statement, however, did not mention China, raising expectations that Beijing could negotiate limited access for its shipping.

With global markets already rattled by the disruption, analysts warn that any prolonged closure of the strait could intensify energy price shocks and add further pressure on inflation worldwide.