China, Saudi Urge Reopening of Strait of Hormuz

Chinese leader Xi Jinping spoke by phone with Saudi Crown Prince Mohammed bin Salman on Monday and urged that ships be allowed to pass through the Strait of Hormuz to keep regional trade and energy flows moving. The call came after U.S. forces reported they had fired on and seized an Iranian cargo ship that attempted to breach a U.S. blockade of Iranian ports.

In the conversation, Xi repeated China’s call for a ceasefire and for negotiations rather than further fighting. He told the Saudi crown prince that China supports Middle Eastern countries “in taking their future and destiny into their own hands, and promoting long-term regional stability and peace,” and added that “the Strait of Hormuz should remain open to normal passage, as this serves the common interests of regional countries and the international community.”

China’s foreign ministry criticized what it described as a U.S. “forced interception” of the Iranian-flagged vessel. Foreign ministry spokesman Guo Jiakun urged all parties to abide by the ceasefire agreement and avoid escalation, warning that “the situation in the Strait of Hormuz is sensitive and complicated.” He called for conditions to be created so normal transit can resume and for steps that would help bring the war to an end as soon as possible.

The United States told reporters it fired on and seized the Iranian cargo ship after the vessel attempted to run a U.S. blockade. Iran’s military said the vessel had come from China, vowed retaliation and called the U.S. action “armed piracy by the U.S. military.”

The strait closure and the interception have immediate economic effects. China is the largest buyer of Iranian crude. Tehran closed the strait to ships other than its own after the United States and Israel launched the war in February. The U.S. began enforcing a blockade on Iranian vessels last week, raising the risk of confrontation in one of the world’s main oil transit chokepoints.

The disruption has affected oil shipments and investor sentiment. Kuwait declared force majeure on some oil exports after Iran closed the strait; before the war Kuwait’s output was about 2.5 million barrels per day. Financial markets had risen on hopes that a two-week ceasefire agreed on April 7 would hold: the S&P 500 gained 4.5% and the Nasdaq Composite climbed 6.8% last week. Those gains narrowed on Monday after the strait stopped handling traffic again and the ceasefire approached its expiry on Tuesday.

Former President Donald Trump posted on his social platform, “The enemy is confused, because they get these same Media ‘reports,’ and yet they realize their Navy has been completely wiped out, their Air Force has gone onto darker runways, they have no Anti Missile or Anti Airplane Equipment, their former leaders are mostly gone.”

Xi’s call with the Saudi crown prince followed a meeting last week in Beijing with the crown prince of Abu Dhabi, where Xi emphasized respect for international law. Chinese officials say they aim to prevent further escalation, keep shipping lanes open for global commerce and support a political solution to the conflict.