China's Diplomatic Balancing Act in the Strait of Hormuz Crisis

In the midst of escalating US-Iran tensions, Chinese Foreign Minister Wang Yi delivered a nuanced message during a phone call with his Iranian counterpart Seyed Abbas Araghchi on April 15, 2026. Wang emphasized the need to respect Iran's sovereignty as a coastal state of the Strait of Hormuz while simultaneously calling for the restoration of safe and free navigation through this vital waterway. This statement reflects China's strategic position, balancing support for a key partner with the imperative to secure global energy flows essential to its economy.

The Strait of Hormuz, a narrow passage connecting the Persian Gulf to the Gulf of Oman, spans just 21 miles at its narrowest point between Iran and Oman. It serves as the primary maritime route for oil exports from major producers like Saudi Arabia, the UAE, Iraq, and Kuwait. Approximately 21 million barrels of oil per day transit the strait, accounting for about 20-25 percent of global petroleum liquids consumption. For China, the world's largest oil importer, disruptions here pose immediate risks, as nearly 40 percent of the oil passing through heads to Chinese ports, supporting industries from manufacturing to transportation.

Recent Escalations: US Blockade and Iranian Responses

The current crisis stems from heightened US-Iran hostilities that intensified in early 2026. Following US and Israeli military actions against Iranian targets, the Trump administration imposed a naval blockade on Iranian ports along the Strait of Hormuz. This move aimed to curb Iran's oil exports and revenue amid accusations of supporting proxy attacks. Iran retaliated by threatening to close the strait entirely and implementing selective restrictions on shipping deemed unfriendly. While the US insists the blockade targets only Iranian vessels and ports, not the strait itself, tanker traffic has plummeted, with non-Iranian ships slowing or turning back under warnings.

Oil prices surged above $100 per barrel in response, marking the fastest rise in recent conflicts. Global markets felt the shockwaves, with refineries scrambling and consumers facing higher fuel costs. China, importing around 11 million barrels daily overall, with a significant portion via Hormuz, saw immediate economic ripples. Factories reported input cost hikes, and strategic reserves were tapped to stabilize domestic prices.

Wang Yi's Key Message: Sovereignty and Navigation in Tandem

During the call, Wang Yi reaffirmed China's support for Iran's sovereignty, security, and legitimate rights as a littoral state. He invoked President Xi Jinping's four propositions for Middle East peace, which advocate de-escalation, dialogue, and multilateralism. Crucially, Wang urged Iran to guarantee freedom of navigation, noting that restoring normal traffic aligns with international calls and serves shared interests. Iran expressed appreciation for China's mediation efforts and commitment to negotiations. This official readout underscores Beijing's role as a constructive mediator.

China has consistently criticized the US blockade as "dangerous and irresponsible," arguing it contravenes global interests. Yet, Beijing avoids direct confrontation, instead pushing for ceasefire momentum and regional reconciliation.

China's Energy Vulnerability and Strategic Reserves

China's dependence on Hormuz is profound. In 2025, about 45-50 percent of its crude imports transited the strait, including 80-90 percent of Iran's sanctioned oil sold at discounts to Chinese buyers. Official figures mask this through ship-to-ship transfers, but disruptions threaten supply chains. A prolonged blockade could cut 5 million barrels per day from global flows, spiking prices and inflating China's import bill by billions monthly.

• Daily Hormuz oil flow: 21 million bpd
• China's share: Up to 8 million bpd indirectly
• Strategic reserves: 90+ days of imports, released gradually
• Diversification: Boosting Russian pipeline oil and LNG from Qatar

To mitigate, China has accelerated pipelines from Russia, expanded Australian coal/LNG, and promoted electric vehicles, reducing oil demand growth.

China-Iran Ties: Beyond Oil to Belt and Road

China-Iran relations, formalized in a 25-year cooperation pact, extend to $400 billion in energy investments. Iran features prominently in the Belt and Road Initiative (BRI), with rail links, ports like Chabahar, and tech transfers. The war has suspended some projects, but China views Iran as a gateway to Central Asia and a counterweight to US influence. Economic ties hit $30 billion annually pre-crisis, with yuan-denominated oil trades challenging dollar dominance.

Despite sanctions, Chinese firms provide dual-use tech, though Beijing denies arms sales. The conflict tests this partnership, as Iran seeks more support while China prioritizes stability.

Global Economic Ripples and Oil Market Dynamics

The blockade has jammed over 100 tankers, stranding 50 million barrels. Brent crude volatility reflects fears of escalation, with prices dipping on ceasefire hopes but vulnerable to incidents. Europe faces LNG shortages, India rations fuel, and Asia's refiners pivot to pricier alternatives. Goldman Sachs warns of shortages if closed longer, projecting $150/barrel scenarios. EIA data highlights Hormuz's irreplaceability.

Legal Framework: UNCLOS and Freedom of Navigation

Under the United Nations Convention on the Law of the Sea (UNCLOS), straits like Hormuz used for international navigation grant transit passage rights. Litttoral states like Iran can regulate but not suspend traffic unduly. China's stance aligns with this, defending Iran's rights while upholding navigation freedoms it champions in South China Sea disputes.

Xi's Four Propositions: A Blueprint for Peace

President Xi's propositions emphasize mutual respect, fairness, justice, and win-win cooperation. Applied here, they call for halting military actions, inclusive dialogues, and addressing root causes like sanctions. China positions itself as neutral broker, hosting talks and aiding reconstruction.

Reactions from Key Players

The US dismisses China's criticism, citing Iran's aggression. Russia backs Iran, India urges restraint as a buyer, and Gulf states fear spillover. EU pushes diplomacy amid energy woes. Beijing's measured tone avoids alienating Washington ahead of trade talks.

Future Outlook: De-escalation Pathways

Prospects hinge on US-Iran negotiations. China could mediate via Shanghai Cooperation Organization or BRICS. Long-term, diversifying routes like Pakistan's Gwadar or Arctic paths reduces vulnerabilities. Restored navigation would ease pressures, but trust-building remains key.

China's approach exemplifies pragmatic diplomacy: firm on principles, flexible on outcomes, safeguarding national interests amid global flux.

Photo by Liam Read on Unsplash