China’s Role in Iran’s Oil Trade and Strait of Hormuz Tensions

Diplomatic pressure, not just military force, is needed to prevent global energy disruptions.

A Critical Chokepoint in Global Oil Trade

The Strait of Hormuz, a narrow waterway linking the Persian Gulf to the Gulf of Oman, handles nearly 20% of the world’s oil supply. With tensions escalating between Iran and the international community, the risk of a supply chain disruption looms large—potentially sending oil prices skyrocketing and destabilizing economies worldwide.

Now, U.S. Treasury Secretary Scott Bessent is urging China to take a more proactive diplomatic role in persuading Iran to reopen the strait to global shipping, warning that military presence alone cannot guarantee long-term stability.

China’s Economic Leverage Over Iran

Bessent emphasized that China buys 90% of Iran’s oil, giving Beijing unprecedented influence over Tehran’s policies. He argued that rather than relying solely on military deterrence, China should use its economic leverage to push Iran toward easing restrictions on shipping.

"China has significant leverage over Iran, and with that leverage comes responsibility," Bessent stated. "Diplomacy must play a greater role in ensuring the free flow of global energy supplies."

Upcoming Trump-Xi Summit: Can Diplomacy Ease Tensions?

With tensions rising, all eyes are on the upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing. The two leaders have maintained a respectful dialogue, which has helped stabilize U.S.-China relations since last year’s trade truce.

But the big question remains: Will diplomacy or economic pressure succeed in easing Iran tensions?

Bessent hinted that both approaches may be necessary, but the path forward remains uncertain.

"The fate of the Strait of Hormuz will depend on whether major powers choose cooperation over confrontation," he concluded.