China will work behind the scenes to reopen the Strait of Hormuz, Bessent said
China will use its influence in Iran to help reopen the Strait of Hormuz, US Treasury Secretary Scott Bessent told CNBC in an interview on Thursday.
“It’s very important that they reopen the strait,” Bessent told CNBC’s Joe Kernen. “I think they will be working behind the scenes as much as anyone has a say in the leadership of Iran.”
China is the world’s largest importer of crude oil. About 10% of imports come from Iran and more than half were from the Middle East by 2024, according to the US Energy Information Administration. Almost all of Iran’s crude oil exports go to China, the Treasury Secretary said.
“China is more interested in reopening the flow than the US,” Bessent told CNBC.
President Donald Trump held talks with President Xi Jinping at a two-day summit in Beijing on Thursday. A White House official said the leaders agreed that Hormuz must be reopened.
“Both sides agreed that the Strait of Hormuz must remain open to support the free movement of energy,” a White House official said. “President Xi also made clear China’s opposition to the Strait conflict and any attempts to impose tariffs on its use.”
Iran has held off the crisis since early March in response to US and Israeli airstrikes that killed many of its leaders, including Supreme Leader Ayatollah Ali Khamenei. The embargo cut off Persian Gulf oil exports to the global market, causing the largest supply disruption in history. About 20 percent of the world’s crude oil went by road before the war.
Tehran now wants to control the narrow sea route, which has been a key point in the ongoing peace talks with the US.
Chinese state media reports, however, did not specifically mention Hormuz as a topic of discussion between Trump and Xi. The leaders “exchanged views on major international and regional issues, such as the situation in the Middle East,” according to state news agency Xinhua.
Iranian ports are blocked
The US has imposed sanctions against Iranian ports in an attempt to pressure Tehran into the deal. No oil has been loaded at its main export port, Kharg Island, for the past three days, Bessent said. The US believes Iran’s storage tanks are full, he said.
“There are no ships going out, no ships coming in, so it can’t keep oil in the water,” said the Secretary of the Treasury. “They’re going to start shutting down production. We can see that happening through satellite imagery.”
Bessent told CNBC that China is interested in buying more US energy in response to Middle East supply disruptions. China and other nations are looking for sustainable energy sources, the Treasury Secretary said.
The US plans to increase oil and natural gas exports from Alaska, a natural source of energy for China, due to its proximity, the Treasury Secretary said.
“We think that not only China, but countries around the world will look to break away from the Middle East to find stable sources of energy and what better place than the US,” Bessent said.
