Strait of Hormuz Tensions: China Hesitant on Iran’s Safe Corridor, Risks Rise for Asian Energy Supply

Strait of Hormuz Tensions: China Hesitant on Iran’s Safe Corridor, Risks Rise for Asian Energy Supply​

New Delhi, March 27 – Iran’s proposal to establish a safe shipping corridor in the Strait of Hormuz has received a lukewarm response from China, highlighting growing concerns among major Asian economies over disruptions in global energy routes, according to a report by Anadolu Agency.

China Avoids Iran’s Proposed Shipping Corridor​

The report stated that Chinese vessels largely avoided the corridor for 10 days after Tehran announced on March 13 that it would monitor ship movements between Larak and Kish islands in its territorial waters.

Chinese shipowners reportedly raised concerns over inspections by Iran’s Islamic Revolutionary Guard Corps (IRGC), including demands for passage fees or cargo transport on Iran’s behalf. A Chinese vessel reportedly used the corridor for the first time only on March 23 after a prolonged delay.

Alternative Routes Chosen Amid Concerns​

Instead of using the Strait of Hormuz, some vessels opted for longer routes. A very large crude carrier from COSCO’s fleet reportedly avoided the Persian Gulf and transited via the Bab el-Mandeb Strait into the Red Sea, docking in Yanbu, Saudi Arabia.

China-Iran Oil Trade Under Scrutiny​

Despite close energy ties, including petroyuan arrangements where China buys Iranian oil at discounted rates in exchange for goods and payments in yuan, the report suggested that Chinese ships were not given preferential passage through the corridor.

China continues to rely heavily on imports from the Gulf, sourcing:

• 45% of its oil from Saudi Arabia, Iraq, the UAE, and Kuwait
• Around 30% of LNG imports from the UAE and Qatar

Energy Supply Risks for Asia​

The report warned that disruptions in the Strait of Hormuz could trigger major energy supply shocks, particularly for Asian economies like China and India, which depend on the region for nearly half of their oil and gas imports.

“China and leading Asian economies face significant risks due to heavy reliance on energy imports from the Persian Gulf amid disruptions in the Strait of Hormuz,” the report noted.

Global Energy Market Impact​

With geopolitical tensions persisting, analysts expect continued volatility in global oil markets, with supply constraints likely to impact prices and shipping routes in the near term.