China in talks with Iran to ensure safe passage of oil and gas through Hormuz

(Patria) - China is negotiating with Iran to ensure the safe passage of Qatari crude oil and liquefied natural gas tankers through the Strait of Hormuz, as the US-Israeli war against Tehran intensifies, three diplomatic sources told Reuters.

The war, which entered its sixth day on Thursday, has left the vital shipping lane virtually closed, cutting off countries around the world from a fifth of global oil and LNG supplies.

China, which has friendly relations with Iran and relies heavily on Middle East supplies, is unhappy with the Islamic Republic's move to paralyze shipping through the strait and is pressuring Tehran to allow safe passage for ships, according to sources.

The world's second-largest economy receives about 45% of its oil through the aforementioned strait.

Ship-tracking data showed a vessel named Iron Maiden passed through the strait overnight after changing its transponder to 'China-owned', but many more sailings will be needed to calm global markets.

Crude oil prices have risen by more than fifteen percent since the start of the war amid production disruptions, while Tehran attacks energy facilities in the Gulf, as well as ships crossing the strait.

Crude oil tanker transit through the strait fell to four vessels on March 1, the day after hostilities broke out, compared to an average of 24 per day since January, according to Vortexa ship-tracking data. Around 300 oil tankers remain within the strait, according to data from Vortexa and Kpler ship-tracking systems.

Sugar industry veteran Mike McDougall told Reuters that Middle East sugar industry executives say there are currently some ships transiting the strait, all of which are either Chinese or Iranian-owned. Jamal Al-Ghurair, managing director of Dubai-based Al Khaleej Sugar, told Reuters that some ships carrying sugar are currently allowed to pass through the strait, while others are not, without providing further details.

The Iranian government announced earlier this week that no ships belonging to the United States, Israel, European countries, or their allies would be allowed to pass through the Strait of Hormuz, but the statement did not mention China.