U.S. urges China action as Hormuz threatens oil

U.S. Secretary of State Marco Rubio on Sunday (local time) urged China to help prevent Iran from closing the Strait of Hormuz, following a U.S. airstrike on Iranian nuclear facilities on June 21. Tehran has threatened to retaliate by shutting down the vital shipping route, raising fears of an oil supply crisis.

Rubio, speaking on Fox News, urged Beijing to use its economic influence over Iran, saying, “I encourage the Chinese government in Beijing to call them [Iran] about that, because they heavily depend on the Strait of Hormuz for their oil.”

Roughly 90 percent of Iran’s oil exports go to China, according to Reuters. With sanctions cutting off other buyers, Beijing has capitalized on discounted Iranian crude, reportedly paying $2 to $5 less per barrel compared to oil from Gulf producers not under sanctions.

In addition, China pays in yuan, encouraging Iran to spend the proceeds on Chinese goods. This arrangement allows Beijing to benefit from both discounted oil and increased exports.

As of March, 16 percent of China’s seaborne crude imports came from Iran. Analysts warn that if Tehran follows through on its threat, China could lose access to its cheapest source of oil.

The Wall Street Journal noted that any disruption to Iranian oil exports would likely drive global prices higher and deal a blow to China’s energy security.

China has not formally responded to Rubio’s remarks. However, New Tanqin, a social media account linked to the state-run Xinhua News Agency, posted a commentary warning that a shutdown of the Strait of Hormuz would drive up oil prices and damage Chinese interests.


이지윤 기자 asap@donga.com