Crude prices climbed sharply on Monday following fresh military strikes and announcements regarding the closure of the strategic Strait of Hormuz, according to reports from Al-Monitor. The United States struck Iran for a second day, prompting reprisals from Tehran directed at U.S. allies across the region and further imperiling an interim peace deal. The renewed hostilities center on competing claims over the critical energy conduit, which handles a significant portion of global oil and liquefied natural gas supplies.
Oil Prices Jump as Conflict Disrupts the Strait of Hormuz
The latest escalation began when the U.S. Central Command (CENTCOM) completed a new wave of offensive strikes using aircraft, naval vessels, and drones with precision munitions against dozens of targets in Iran. Iranian state media reported that U.S. strikes targeted southern and western areas, including Qeshm Island, Bandar Abbas, and Khuzestan province, resulting in casualties including a telecommunications worker and injuries at a water pumping station in Mahshahr. In response, Iran’s Revolutionary Guards announced strikes on Bahrain, Jordan, Kuwait, and Oman.
Gulf States Turn to China for Diplomatic Leverage
As the conflict escalates, Gulf Arab states are looking to Beijing rather than Washington to utilize its economic leverage over Iran to open the Strait of Hormuz and the Red Sea, Reuters reported. Regional sources noted that the ongoing conflict has exposed the limits of American power, prompting Gulf governments to hope that China can steer Tehran toward a negotiated settlement.
China’s Foreign Minister Wang Yi has held multiple calls and meetings with foreign counterparts to seek a ceasefire, while special envoy Zhai Jun has conducted talks in Gulf capitals and Iran. China maintains deep economic ties to the region as a major buyer of oil and Iran’s biggest trading partner. Analysts, such as Henry Tugendhat at the Washington Institute, have observed that Beijing’s overriding priority is to preserve relationships across the region and protect its shipping and economic interests without openly taking sides or risking diplomatic fallout.
Iran Proposes Special Considerations for Friendly Nations
Amid discussions on the future management of the waterway, Iran’s ambassador to Beijing, Abdolreza Rahmani Fazli, announced that China and other friendly nations would be granted special considerations
regarding service fees charged to ships using the Strait of Hormuz, according to the bostonherald.com. Speaking at the World Peace Forum in Beijing, Fazli stated that the waterway is now a matter of national security following the conflict with the U.S. and Israel, and that new arrangements will be made with the collaboration of Oman.
While Iran maintains that fees are necessary to guarantee safe passage and cover environmental costs under international maritime laws, the U.S. and Gulf Arab countries insist that Iran and Oman cannot impose charges of any kind. Meanwhile, China’s Foreign Ministry has called for the unhindered flow of shipping through the strait, emphasizing that open transit remains in the interest of all parties.
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