Amid rising tensions in the Middle East, experts warn that a blockade of the Strait of Hormuz could seriously impact global energy supplies — especially for China and Qatar.
China, the world’s top importer of liquefied natural gas (LNG), has recently signed 15 long-term LNG deals with Qatar and the UAE, totaling about 30 million metric tons per year. But nearly all of this gas must pass through the narrow Strait of Hormuz, a key shipping route now under threat due to Iran-Israel tensions.
The closure could disrupt 20% of global oil trade and severely impact countries like India, which relies on the route for 70% of its crude and 40% of LNG imports.
If that route is blocked, China may be forced to buy gas on the expensive spot market, where prices are already rising. Around 80% of China’s oil imports from the Middle East and most of its LNG supplies also rely on this sea passage. A shutdown could hurt China’s energy supply and raise industrial costs.
Qatar is another major LNG supplier that could be affected. Though Qatar has kept good diplomatic relations with Iran, any disruption in shipping would still impact its LNG exports. Qatar currently supplies over 18 million metric tons of LNG to China each year — more than any other country, including Australia.
Experts say this situation is especially complicated because both Qatar and China are friendly with Iran. A closure of the Strait would hurt these countries the most, despite their neutral stance, highlighting how global energy trade is deeply tied to regional politics.
Source: Intermodal Weekly Market Report
Iran’s Parliament Votes to Close Strait of Hormuz; Ships Turn Back Minutes Later
Iran’s parliament has unanimously voted in favor of closing the Strait of Hormuz.
The ultimate decision now rests with the Supreme National Security Council and Supreme Leader Ayatollah Khamenei.
At around 9:15 AM ET today, multiple vessels suddenly made 180-degree turns while nearing the Strait—just moments after the parliamentary vote was passed.
Rubio Urges China to Deter Iran from Closing Strait of Hormuz
As per Reuters: US Secretary of State Marco Rubio has urged China to pressure Iran not to close the Strait of Hormuz, calling it “economic suicide” for Tehran. He warned the move would escalate tensions and affect energy imports to countries like China.
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