The US has called on China to stop Iran from closing the Strait of Hormuz, as it remains one of the key global shipping routes, officials said.
Iran on Sunday threatened to close the vital shipping route in response to earlier US strikes on key Iranian nuclear sites, including Isfahan, Natanz and Fordow, in an attempt to prevent Iran from obtaining nuclear weapons, which the IAEA, American Intelligence and the Iranian side said was not the case.
US Secretary of State Marco Rubio has reportedly dialled his Chinese counterpart in an attempt to convince the Iranian side not to block the important shipping route after the Tehran parliament on Sunday approved a plan to close the strait.
The disruption in the trade route will have immense consequences on the global economy, particularly for China and India, which remain among the largest oil importers in the world.
Apart from the direct increase in crude oil costs, the price rise will have immense adverse effects on the economies. Inflation will surge across countries, which would probably limit the economic prospects, including a decline in the GDP.
Oil prices are already surging following the US attack on Iranian nuclear sites, with reports suggesting that prices have soared to their highest level in five months.
Also read: Iran plans to shut Strait of Hormuz
Rubio told reporters on Sunday, "I encourage the Chinese government in Beijing to call Iran about that because they heavily depend on the Straits of Hormuz for their oil.”
He said, “If Iran closes the Strait, it will be like committing economic suicide, and the US retains options to deal with that; however, other nations should also be considering the ongoing developments in the region. The closure of the Strait would hurt other countries more than it hurts the US.”
Approximately 20 per cent of the world’s oil goes through the Strait of Hormuz, with the majority of the Middle Eastern nations transporting their oil and gas energy through this route.
Oil prices on Monday jumped to $81.40 a barrel, but later slid back around $78, up 1.4 per cent on the day.
China imports around 1.8 million barrels per day from Iran, other countries including India, Japan and South Korea, also rely heavily on crude oil that passes through the Strait.
US actions have hampered the economic prospects of the major economies relying on the strait, with one miscalculated move of striking Iran.
China on Monday registered a strong response, saying that the Strikes have damaged Washington’s credibility as a partner in peace.
China's UN Ambassador Fu Cong, US involvement in Iran had further pushed the region towards destabilisation.
Follow us
