U.S. Trade Representative Jamieson Greer has confirmed that China wants to see the Strait of Hormuz reopened without any restrictions, military control, or tolls, in a live interview with Bloomberg News on Friday. Greer, who participated in summit meetings between President Donald Trump and Chinese President Xi Jinping in Beijing, said Chinese officials made clear during the talks that unrestricted passage through the strait is of critical importance to them. He added that Washington is confident Beijing will take steps to limit material support for Iran.
"It's really important for China to have the Strait of Hormuz open, no tolling, no military control, and that was clear from the meeting," Greer stated. The strait has been largely closed to all but Iranian vessels due to the Iran war, causing the biggest-ever disruption to global energy supplies. Under normal circumstances, nearly a fifth of the world's oil and liquefied natural gas supplies travel through the waterway.
The Trump administration is seeking Chinese support to end the conflict, which has dented the president's approval ratings ahead of November's crucial midterm elections. China is Iran's closest ally and the main buyer of Iranian oil. "With respect to Chinese involvement with Iran, our view is the Chinese are being very pragmatic, and they don't want to be on the wrong side of this," Greer added. "They want to see peace in that area. President Trump wants to see peace in that area. So we have a lot of confidence that they will do what they can to limit any kind of material support for Iran."
China's Foreign Ministry issued a statement about the Iran talks, urging continued and stabilized momentum in deescalation. "There is no need to continue this war that should not have happened, and finding a solution earlier is beneficial to both the United States and Iran … and even the whole world," the ministry said. While the ministry did not specifically mention the Strait of Hormuz in its summary, it called for shipping routes to be reopened as soon as possible. Beijing has consistently called for an end to the fighting and for the strait to remain open.
The number of supertankers hauling unsanctioned oil through the Strait of Hormuz has shown signs of rising in recent days, offering limited relief to an oil market that has suffered the largest supply disruption in history. However, new attacks on vessels near the strait and the apparent seizure of a commercial vessel near the United Arab Emirates serve as reminders of the costs of a prolonged stalemate, with peace talks currently stalled.
Key Takeaways:
1. China wants the Strait of Hormuz reopened without military control or tolls.
2. USTR Greer expresses confidence that China will limit material support for Iran.
3. The Iran war has caused the strait to close, triggering the largest energy supply disruption in history.
4. Nearly one-fifth of global oil and LNG supplies normally pass through the Strait of Hormuz.
5. The number of supertankers carrying unsanctioned oil through the strait has risen in recent days.
