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US asks China to stop Iran from closing the Strait of Hormuz

Thai Rath

Thailand

Monday, June 23


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US Secretary of State Marco Rubio has called on China to help prevent Iran from closing the Strait of Hormuz, one of the world's most important shipping lanes.

US Secretary of State Marco Rubio has called on China to help prevent Iran from closing the Strait of Hormuz, one of the world's most important shipping lanes. His comments came after Iran's Press TV reported that parliament had approved plans to close the strait, but added that the final decision would lie with the Supreme National Security Council.

A disruption in the supply of oil would have a devastating impact on the economy, especially for China, the world's largest buyer of Iranian oil and with close ties to the country. Oil prices surged after the US attacked Iran's nuclear facilities, with benchmark Brent crude hitting a five-month high.

"I would encourage the Chinese government to call Iran on this because they are very dependent on oil from the Strait of Hormuz," Rubio told Fox News on Sunday."If they close the Strait, it would be economic suicide. And we still have options to deal with this, but other countries should consider this as well. It would hurt other countries' economies more than ours."

About 20% of the world's oil passes through the Strait of Hormuz, with major Middle Eastern oil and gas producers using the route to transport energy from the region. Any attempt to disrupt operations in the strait could send global oil prices soaring.

Oil prices rose slightly at the open on Thursday, with Brent crude jumping to $81.40 a barrel. However, it fell to around $78 a barrel, up 1.4% on the day.

Crude prices affect everything from the price of fuel in your car to the price of food at the supermarket. China, in particular, buys more oil from Iran than any other country, importing more than 1.8 million barrels per day from the country last month, according to shipping tracker Vortexa. Major Asian nations including India, Japan and South Korea also heavily rely on crude passing through the strait.

Energy analysts say Iran"would benefit little and could lose too much," noting that closing the strait "risks antagonizing its oil and gas-producing neighbors in the Persian Gulf and angering China, a key market, by disrupting traffic through the strait."

The US entered the conflict between Iran and Israel over the weekend, with President Donald Trump saying the US had destroyed a key Iranian nuclear site.

It is not yet clear how much damage the attack caused, however, with the United Nations nuclear watchdog saying it could not assess the extent of damage to the heavily fortified underground Fordo nuclear facility. Iran said Fordo sustained only minor damage.

Trump also warned Iran that if it did not give up its nuclear program, it would face a “much worse” attack in the future.

On Monday, China said the US strikes had undermined the credibility of the US government and called for an immediate ceasefire. Chinese Ambassador to the United Nations Fu Chong said all parties should restrain “the impulse to use force and add fuel to the fire.”

In an editorial, China's state-run Global Times newspaper also said that US involvement in Iran"has made the situation in the Middle East more complicated and unstable" and was pushing the conflict into an "unmanageable state".

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