U.S. Treasury Secretary Scott Bessent stated in a CNBC interview that China is likely to leverage its influence in Iran to facilitate the reopening of the Strait of Hormuz, a crucial maritime route for global oil shipments.
Bessent emphasized that it is in China's interest to restore access to the strait, which has been blockaded by Iran since early March following U.S. and Israeli airstrikes that resulted in significant Iranian leadership casualties. The blockade has led to a historic disruption in oil supply, as approximately 20% of the world's crude oil previously transited through this strait.
Bessent noted that nearly all of Iran's crude oil exports are directed to China, which is the world's largest crude oil importer, sourcing about 10% of its imports from Iran and over half from the Middle East. During a recent summit in Beijing, President Trump and President Xi Jinping acknowledged the necessity of keeping the Strait of Hormuz open to ensure the free flow of energy.
However, the Chinese media did not confirm that Hormuz was specifically discussed. Bessent also mentioned that in light of the ongoing supply disruptions, China is looking to diversify its energy sources, including increasing purchases of U.S. energy, particularly from Alaska, which is geographically well-positioned for such exports.
This shift reflects a broader trend among nations seeking more stable energy supplies away from the Middle East