The U.S. has urged China to dissuade Iran from closing the Strait of Hormuz, a critical global oil trade route.
Iran is angry and threatening to close the strait with their decision taken following U.S. airstrikes on Iranian nuclear sites.
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U.S. Secretary of State Marco Rubio emphasized that closing the strait would be “economic suicide” for Iran, as it heavily relies on oil exports, with nearly 80% going to China.
The strait handles about 20% of global oil consumption, and any disruption could spike oil prices and destabilize economies, particularly affecting China, India, and Japan.
Iran’s parliament approved a resolution to close the strait, but the final decision rests with its Supreme National Security Council.
Analysts warn that while Iran could disrupt shipping, the U.S. Navy’s Fifth Fleet in Bahrain could swiftly counter any blockade, though some suggest the market underestimates the potential duration of disruptions.
China, a key Iranian ally, is unlikely to support actions that harm its oil supply, and Beijing has called for a ceasefire in response to U.S. actions.