Xi Jinping Calls for Normal Passage Through Strait of Hormuz Amid US-Iran Standoff

Xi Jinping's Diplomatic Intervention Amid Rising Tensions

Chinese President Xi Jinping has made a significant intervention in the escalating crisis surrounding the Strait of Hormuz, urging that normal passage through this vital waterway be maintained. In a phone call on April 20, 2026, with Saudi Crown Prince Mohammed bin Salman, Xi emphasized that keeping the strait open serves the common interests of regional countries and the international community. This statement comes at a critical juncture, as the United States maintains a naval blockade on Iranian ports and ships, while Iran has restricted traffic, leading to near-total halt in commercial shipping.

The call also highlighted China's commitment to a comprehensive ceasefire and diplomatic resolution in the Middle East. Xi reiterated support for regional nations taking their future into their own hands through dialogue and cooperation, underscoring Beijing's role as a proponent of stability in the Gulf region.

Timeline of the Strait of Hormuz Crisis

The current standoff traces back to late February 2026, when the United States and Israel launched Operation Epic Fury, airstrikes that assassinated Iran's Supreme Leader Ali Khamenei. Iran retaliated with missile and drone attacks, and the Islamic Revolutionary Guard Corps (IRGC) promptly warned against passage through the Strait of Hormuz, effectively closing it.

• Early March: IRGC attacks multiple vessels, including MT Skylight and MKDVYOM, killing crew members. Traffic drops 70%; oil prices surge.
• Mid-March: IRGC expands restrictions to ships bound for US allies; mines laid, insurance premiums skyrocket.
• Late March: Brent crude peaks at $126 per barrel; over 20,000 mariners stranded.
• April 4-8: Temporary ceasefire; Iran charges tolls up to $2 million per ship.
• April 11-13: US imposes blockade on Iranian ports; Iran re-closes strait.
• April 17-18: Brief Iranian opening revoked due to US actions; attacks on non-Iranian ships resume.
• April 20: Xi's call with Saudi prince amid stalled peace talks.

As of April 21, traffic remains virtually at a standstill, with only sporadic transits by select vessels.

The Strategic Importance of the Strait of Hormuz

The Strait of Hormuz, a narrow 21-mile-wide passage between Iran and Oman, serves as the world's most critical oil chokepoint. Approximately 20-21 million barrels of oil per day—about 20% of global seaborne trade—pass through it, alongside 20% of liquefied natural gas (LNG). This includes exports from major producers like Saudi Arabia, Iraq, UAE, Kuwait, and Qatar, with Iran contributing significantly despite sanctions.

Under international law, specifically the United Nations Convention on the Law of the Sea (UNCLOS), straits like Hormuz qualify as transit passage routes, obligating states to keep them open. Disruptions here ripple globally, as alternative pipelines (e.g., Saudi's East-West, UAE's Habshan-Fujairah) cover only about 9 million barrels per day.

China's Energy Security Imperiled

China, the world's largest oil importer consuming over 15 million barrels per day, relies on the strait for 35-50% of its crude imports. In 2025, Iran supplied around 0.84-1.2 million barrels per day to China, accounting for 80%+ of Iran's seaborne exports—often rebranded to evade sanctions. While Beijing officially denies direct Iranian purchases, data from firms like Kpler confirm heavy dependence.

Strategic petroleum reserves hold nearly 1 billion barrels, enough for several months, but prolonged closure risks inflation, manufacturing slowdowns, and higher fuel costs. Early 2026 disruptions already pushed domestic gasoline prices up 15-20%. Diversification to Russia (via ESPO pipeline) and Venezuela helps, but Middle East remains key.

Beijing's Diplomatic Balancing Act

China has navigated the crisis carefully, granting passage to its own tankers (e.g., Iron Maiden, Sino Ocean) while criticizing both US 'blockade' as 'dangerous and irresponsible' and Iran's attacks. Foreign Ministry spokespersons like Guo Jiakun have urged ceasefire adherence and de-escalation. Xi's four-point proposition emphasizes dialogue, sovereignty, and multilateralism.

In calls with UAE's Sheikh Khaled and Spain's Pedro Sanchez, Xi warned against reverting to 'law of the jungle,' positioning China as a responsible power. Beijing vetoed a UN resolution seen as anti-Iran, advocating balanced solutions. Ties with Saudi Arabia, a key oil supplier, are deepened via the 10th anniversary of their strategic partnership.Xinhua report on Xi-MBS call

Economic Ripples Felt in China

The blockade has spiked global Brent to over $100/barrel, with Dubai crude hitting $166 at peaks. China's economy faces headwinds: higher import costs add billions to trade deficits, petrochemical sectors strained, and inflation risks loom. Q1 2026 GDP growth dipped to 4.5% partly due to energy volatility.

Positive offsets include accelerated renewables push (solar/wind now 40% power mix) and EV adoption reducing oil demand by 1 million bpd. Stockpiles and rail imports from Russia mitigate short-term pain, but experts warn of 0.5-1% GDP drag if prolonged.

Global Repercussions and Stakeholder Perspectives

Beyond China, Europe faces gas shortages (Qatar's LNG halted), India rations fuel, and airlines worldwide cut flights. OPEC+ boosts output insufficiently; IEA releases reserves.

• US: Trump defends blockade to pressure Iran, claims success in halting Tehran's revenue.
• Iran: IRGC vows retaliation; tolls fund war effort.
• Saudi/UAE: Production cuts, seek stability.
• Experts: Analysts like those at Oxford Energy note China's resilience but urge diplomacy.

Wikipedia timeline

China's Potential Mediation Role

With ties to Iran (25-year pact) and Gulf states, plus US detente, China eyes mediator status. Past successes like Saudi-Iran deal position it well. Xi's call signals proactive diplomacy, potentially hosting talks.

Photo by Srini Somanchi on Unsplash

Outlook: Pathways to Resolution

Prospects hinge on ceasefire renewal, US easing blockade, Iran removing mines/tolls. Multilateral forums like UN, plus China-Saudi coordination, offer hope. Long-term: diversify routes, boost reserves. Beijing's stance reinforces its global leadership narrative.