China to Pressure Iran on Strait of Hormuz, Bessent Says
CNBC reported Thursday that U.S. Treasury Secretary Scott Bessent believes China will quietly lean on Iran to lift its blockade of the Strait of Hormuz. Bessent made the remarks in a live interview, citing Beijing’s deep dependence on Middle Eastern crude.
Beijing’s Economic Stake in the Strait
Bessent told CNBC that China stands to lose far more than the United States if the waterway stays shut. China is the world’s largest crude importer. Roughly half its oil came from the Middle East in 2024, per the U.S. Energy Information Administration. Nearly all of Iran’s crude exports flow exclusively to China. “China has a much bigger interest in reopening the strait than the U.S. does,” Bessent said. He added that Beijing would work behind the scenes to whatever extent outside powers can influence Tehran’s leadership.
Trump and Xi Reach an Agreement in Beijing
President Donald Trump met with President Xi Jinping in Beijing on Thursday during a two-day summit. A White House official confirmed the two leaders agreed the Strait of Hormuz must remain open. The official statement emphasized that free energy flows must be preserved. President Xi also expressed opposition to any militarization of the waterway. Beijing separately pushed back against reported Iranian proposals to charge transit tolls on passing vessels. Chinese state media acknowledged the leaders discussed Middle East conditions but did not reference Hormuz by name.
Background: Iran’s Blockade and the Largest Supply Shock in History
Iran sealed the strait in early March following U.S. and Israeli strikes that killed numerous senior officials, including Supreme Leader Ayatollah Ali Khamenei. Before the closure, roughly one-fifth of global seaborne crude passed through the narrow chokepoint each day. Tehran has since asserted sovereignty over the lane and reportedly floated a toll regime for transiting ships. The dispute has become a central stumbling block in ceasefire negotiations with Washington.
U.S. Counter-Pressure and a New Energy Pitch
The U.S. has imposed its own counter-blockade on Iranian ports. Bessent told CNBC that no vessels have loaded or offloaded at Iran’s main export terminal, Kharg Island, for at least three days. He said satellite imagery shows production shutdowns beginning as Iranian storage capacity fills up. The Treasury Secretary also pitched the disruption as an opportunity for American energy exports. He said China and other nations are actively seeking stable supply alternatives. Washington plans to accelerate oil and liquefied natural gas exports from Alaska, citing its proximity to Asian markets as a geographic advantage.
Read Next: Oil Markets Brace for Extended Middle East Supply Crunch
