In a recent interview with CNBC, U.S. Treasury Secretary Scott Bessent discussed China's potential role in reopening the Strait of Hormuz, emphasizing that Beijing has a significant interest in resolving the blockade imposed by Iran. Bessent noted that approximately 10% of China's crude oil imports originate from Iran, making the reopening of the strait crucial for China's energy supply, especially as over half of its imports come from the Middle East.
The Strait of Hormuz has been under blockade since early March due to tensions stemming from U.S. and Israeli airstrikes that resulted in the deaths of key Iranian leaders. This disruption has had a considerable impact on global oil exports, as the strait is a vital transit route for about 20% of the world’s crude oil. Bessent stated that Iran is currently asserting control over this strategic waterway, complicating ongoing peace negotiations with the U.S.
During a recent summit, President Donald Trump and Chinese President Xi Jinping acknowledged the need to keep the Strait of Hormuz open to ensure the free flow of energy. The discussions, however, did not explicitly confirm that the strait was a focal point, as reports from Chinese state media did not detail this aspect of their conversation.
Bessent also highlighted China's interest in diversifying its energy sources, suggesting that the U.S. could play a more significant role as a reliable supplier. The U.S. plans to increase oil and liquefied natural gas exports from Alaska, which could offer a more stable energy option for China and other nations looking to reduce dependence on Middle Eastern sources.