Why turmoil in Hormuz is a major problem for China
Beijing relies on the strait for roughly half of its crude oil imports and a significant share of its liquefied natural gas supplies from Gulf producers.
Hi, readers:
The intensifying attacks in the Strait of Hormuz are a major problem for China. Beijing relies on the strait for roughly half of its crude oil imports and a significant share of its liquefied natural gas supplies from Gulf producers, making any disruption a direct threat to its energy security.
At least 19 commercial ships have been damaged or hit by Iran-linked forces in the Gulf, the Strait of Hormuz and nearby waters since the war began Feb. 28, according to the Joint Maritime Information Center. Three more merchant vessels were struck Wednesday, as an Iranian military spokesperson warned that the world should “get ready for oil at $200 a barrel."
With the US-Israel-Iran war nearing its third week, China is using its limited leverage to try to break the stalemate over Hormuz and preserve its Gulf partnerships without openly antagonizing Iran.
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Leading this week
Access to the Strait of Hormuz is central to China’s calculations. The narrow waterway between Iran and Oman links the Gulf to the Arabian Sea and carries roughly a fifth of globally traded oil and large volumes of LNG. For China — now the world’s largest oil importer — most seaborne crude from Saudi Arabia, the United Arab Emirates, Kuwait, Iraq and Iran transits this chokepoint, so prolonged instability there directly threatens Chinese growth and its image as a reliable economic partner.
On Tuesday, the Financial Times reported that China’s Transport Ministry summoned executives from European shipping giants Maersk and Mediterranean Shipping Company to raise concerns after the firms imposed surcharges, hiked freight rates and suspended some routes to and from the region.
💭 Interview: Sam Wendel, Al-Monitor's senior market and research analyst, told us that China's reliance on Hormuz has only deepened in recent years. "Independent 'teapot' refiners have leaned on discounted Iranian crude, while Chinese companies have broadened energy and commercial ties across the region. A prolonged disruption [of the strait] would push up costs and strain supply chains, though China is better placed than many Asian importers to absorb the shock thanks to its large oil stockpiles."
The New York Times reported Tuesday that in January and February, before the war, China increased its oil purchases by around 16% compared with the same period in 2025, effectively padding its buffers.
Wendel noted that Chinese shipping giant COSCO last week paused new bookings through the strait.
What is next? The continued turbulence could force China to look for alternatives to the Middle East and Gulf energy routes. "If instability persists, Beijing is likely to expand energy ties with Russia, including additional oil and LNG purchases, and may fast-track projects such as the proposed Power of Siberia 2 gas pipeline," Wendel argues.
China has also built up one of the world’s largest strategic and commercial crude reserves and was estimated to hold about 1.2 billion barrels of onshore stockpiles as of January, according to data from analytics firm Kpler.
Cautious diplomacy: On March 8, China’s special envoy for the Middle East, Zhai Jun, visited Riyadh for talks with Saudi Foreign Minister Faisal bin Farhan, and separately met Jasem Mohamed Albudaiwi, secretary-general of the Gulf Cooperation Council. On March 11 Beijing gave its most explicit — though carefully qualified — criticism of Iran’s strikes on Gulf states. China “does not agree” with attacks on Gulf countries and “condemns nondiscriminatory attacks against civilians or non-military targets,” a Foreign Ministry spokesperson said.
Special Envoy Zhai Jun of the Chinese government meets Saudi Arabian Foreign Minister Faisal bin Farhan in Riyadh on March 8, 2026. Source: Chinese Foreign Ministry.
Similar caution has marked recent calls by Chinese Foreign Minister Wang Yi with Gulf counterparts:
➡️ In a phone call with Bahraini Foreign Minister Abdullatif bin Rashid Al Zayani on March 9, Wang said, “The situation in the Gulf region is escalating rapidly, and Bahrain’s security is also being undermined, which China is deeply concerned about.”
➡️ In a call the same day with Kuwaiti Foreign Minister Sheikh Jarrah Jaber Al-Ahmad Al-Sabah, he said, “Any attacks on innocent civilians and non-military targets should be condemned.”
➡️ Speaking with Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani on March 10, Wang stressed that “the sovereignty, security and territorial integrity of the Gulf Arab countries should be respected.”
➡️ In separate calls with his Emirati and Saudi counterparts, Wang added that “the red line of protecting civilians in the conflict must not be crossed. Non-military targets such as energy, economic and livelihood targets should not be attacked, and the safety of shipping lanes must be maintained.”
Taken together, Beijing is signaling that its red lines revolve around civilian protection and, crucially, the security of energy infrastructure and shipping — a reflection of how much it has at stake in the Strait of Hormuz.
Photo of the week
This handout photo taken on March 11, 2026, and released by the Royal Thai Navy shows smoke rising from the Thai bulk carrier Mayuree Naree near the Strait of Hormuz after an attack. (Photo by Handout / ROYAL THAI NAVY / AFP via Getty Images)
Deals and visits ✈️
- Chinese Middle East envoy meets with Saudi foreign minister, GCC chief
- China’s Wanhua Chemical declares force majeure on supplies to Middle East customers
- China’s Foreign Ministry says over 10,000 Chinese travelers have returned from Middle East
- Chinese oil, gas stocks surge
- Satellite-focused subsidiary of Chinese auto giant Geely expands into Morocco, Algeria
- Chinese, Egyptian foreign ministers hold phone call
- Chinese airlines resume some flights to Middle East
