U.S. Secretary of State Marco Rubio publicly called on the Chinese government this Sunday to intervene to prevent Iran from blocking the Strait of Hormuz—a strategic waterway that transports nearly one-fifth of the world's crude oil daily and is facing unprecedented tensions.
The United States names China: You also rely on this strait, don't sit idly by.
Rubio candidly stated during an interview with Fox News: "I encourage the Chinese government to communicate with Iran, as their crude oil is heavily reliant on the Strait of Hormuz." As Iran's most important oil buyer, China maintains a friendly relationship with the Islamic Republic, and the U.S. clearly hopes to leverage Beijing's influence to prevent the situation from escalating.
(Iran's Ace: Will global energy be disrupted if the Strait of Hormuz is blocked?)
Iran issues a tough warning: all options for retaliation remain on the table.
Shortly after the U.S. airstrikes on three nuclear facilities in Iran, the Iranian Foreign Minister stated that Iran "reserves all means to defend its sovereignty." At the same time, Iranian state media quoted a senior legislator saying that the Iranian parliament had supported a proposal to block the Strait of Hormuz. However, reports indicate that the real decision-making power still resides with the Iranian National Security Council.
The consequences of the blockade are severe, and oil prices may soar to over 100 dollars per barrel.
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and is a vital artery for oil transportation. According to the U.S. Energy Information Administration (EIA), approximately 20 million barrels of crude oil (accounting for 20% of global consumption) pass through this waterway daily in 2024. If blocked, Rapidan Energy and Goldman Sachs warn that oil prices could exceed $100 per barrel.
However, JPMorgan analysts believe that the likelihood of Iran blocking the Strait remains low, as this would be seen by the United States as a signal to go to war.
Rubio warns: This is Iran's economic suicide.
Rubio pointed out that if Iran blocks the Hormuz Strait, it would be tantamount to cutting off its own economic lifeline, as its crude oil exports also rely on this waterway. "This would be a self-harming act, equivalent to preventing itself from exporting oil to China, cutting off a major source of income," said Matt Smith, chief analyst at energy data company Kpler.
According to Kpler data, Iran is the third largest oil producer in OPEC, with a daily production of 3.3 million barrels, of which 1.84 million barrels are exported, mostly to China. About half of China's seaborne crude oil imports come from the Persian Gulf region.
United States: We have corresponding options, and the blockade will face international backlash.
Rubio emphasized that the U.S. retains multiple options to respond to potential actions by Iran. He stated that such behavior would inflict economic damage on other countries far greater than that on the U.S., saying, "This will be a large-scale escalation that will provoke responses not just from the U.S., but other countries will also not sit idly by."
The U.S. military is stationed in the Persian Gulf, but the market may underestimate the risk of conflict.
The U.S. Navy's Fifth Fleet is stationed in Bahrain, responsible for the maritime trade security in the Persian Gulf. The general market expectation is that if Iran attempts to block the Strait of Hormuz, the U.S. military will respond quickly. However, former President Bush's energy advisor and founder of Rapidan Energy, Bob McNally, warned that the market may be overly optimistic.
"We believe that Iran may be able to disrupt the Strait of Hormuz for much longer than the market expects, possibly for weeks or even months, and this is not something that can be resolved in just a few days," he stated in an interview with CNBC.
This article discusses the Hormuz crisis? The United States calls on China to take action to stop Iran from cutting off the global oil lifeline. First appeared in Chain News ABMedia.
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Hormuz Crisis? The United States calls on China to take action to prevent Iran from cutting off the global oil lifeline.
U.S. Secretary of State Marco Rubio publicly called on the Chinese government this Sunday to intervene to prevent Iran from blocking the Strait of Hormuz—a strategic waterway that transports nearly one-fifth of the world's crude oil daily and is facing unprecedented tensions.
The United States names China: You also rely on this strait, don't sit idly by.
Rubio candidly stated during an interview with Fox News: "I encourage the Chinese government to communicate with Iran, as their crude oil is heavily reliant on the Strait of Hormuz." As Iran's most important oil buyer, China maintains a friendly relationship with the Islamic Republic, and the U.S. clearly hopes to leverage Beijing's influence to prevent the situation from escalating.
(Iran's Ace: Will global energy be disrupted if the Strait of Hormuz is blocked?)
Iran issues a tough warning: all options for retaliation remain on the table.
Shortly after the U.S. airstrikes on three nuclear facilities in Iran, the Iranian Foreign Minister stated that Iran "reserves all means to defend its sovereignty." At the same time, Iranian state media quoted a senior legislator saying that the Iranian parliament had supported a proposal to block the Strait of Hormuz. However, reports indicate that the real decision-making power still resides with the Iranian National Security Council.
The consequences of the blockade are severe, and oil prices may soar to over 100 dollars per barrel.
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and is a vital artery for oil transportation. According to the U.S. Energy Information Administration (EIA), approximately 20 million barrels of crude oil (accounting for 20% of global consumption) pass through this waterway daily in 2024. If blocked, Rapidan Energy and Goldman Sachs warn that oil prices could exceed $100 per barrel.
However, JPMorgan analysts believe that the likelihood of Iran blocking the Strait remains low, as this would be seen by the United States as a signal to go to war.
Rubio warns: This is Iran's economic suicide.
Rubio pointed out that if Iran blocks the Hormuz Strait, it would be tantamount to cutting off its own economic lifeline, as its crude oil exports also rely on this waterway. "This would be a self-harming act, equivalent to preventing itself from exporting oil to China, cutting off a major source of income," said Matt Smith, chief analyst at energy data company Kpler.
According to Kpler data, Iran is the third largest oil producer in OPEC, with a daily production of 3.3 million barrels, of which 1.84 million barrels are exported, mostly to China. About half of China's seaborne crude oil imports come from the Persian Gulf region.
United States: We have corresponding options, and the blockade will face international backlash.
Rubio emphasized that the U.S. retains multiple options to respond to potential actions by Iran. He stated that such behavior would inflict economic damage on other countries far greater than that on the U.S., saying, "This will be a large-scale escalation that will provoke responses not just from the U.S., but other countries will also not sit idly by."
The U.S. military is stationed in the Persian Gulf, but the market may underestimate the risk of conflict.
The U.S. Navy's Fifth Fleet is stationed in Bahrain, responsible for the maritime trade security in the Persian Gulf. The general market expectation is that if Iran attempts to block the Strait of Hormuz, the U.S. military will respond quickly. However, former President Bush's energy advisor and founder of Rapidan Energy, Bob McNally, warned that the market may be overly optimistic.
"We believe that Iran may be able to disrupt the Strait of Hormuz for much longer than the market expects, possibly for weeks or even months, and this is not something that can be resolved in just a few days," he stated in an interview with CNBC.
This article discusses the Hormuz crisis? The United States calls on China to take action to stop Iran from cutting off the global oil lifeline. First appeared in Chain News ABMedia.