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US Secretary of State Brand Rubio On Sunday, China called China to prevent the closure of the Strait of Mountains, one of the most important trade routes for crude oil in the world.
“I urge the Chinese government in Beijing to call them about it because they are heavily dependent on the Horum Strait for their oil,” Rubio said in an interview with Fox News. China is the most important customer of oil in Iran and maintains friendly relations with the Islamic Republic.
Iran Foreign Minister warned Earlier on Sunday, the Islamic Republic “leaves all options for protecting its sovereignty” after the United States bombed three key nuclear sites On weekends.
Meanwhile, Iranian state media reported this Iran’s Parliament supported the closure Hormus Strait, citing the senior legislator. However, the final decision to close the Strait lies in the Iranian National Security Council, the report said.
Attempting to block a narrow waterway between Iran and Oman may have deep consequences for the global economy. About 20 million barrels per day of crude oil, or 20% global consumption, passed through the Strait in 2024, according to Administration of energy information.
According to Goldman Sachs and Rapidan Energy Consulting Firm, oil prices can shoot above $ 100 per barrel if the shed is closed for a long period. JPMORGAN analysts consider the risk of clinging to Hormuz as low because the United States is considering a step like a war declaration.
Rubio said Iran would be “economic suicide” to close the Strait, as the export of oil of the Islamic Republic goes through the waterway.
Iran is the third largest oil producer in OPEC, which pumps 3.3 million barrels a day. Last month, it exported 1.84 million bar. According to data from KPler. According to Kpeler, about half of the import of oil in Chinese water crude oil, or 5 million BPDs, comes from the Gulf of Persian.
“It would be early the application: the shutdown of the Strait will stop the flow of its export to China, stopping the key stream of income,” said CNBC Matt Smith, a leading oil analyst in KPLER.
The US Secretary of State said on Sunday that the United States was keeping options for dealing with Iran trying to close the strait.
“It will damage the economy of other countries much worse than ours,” said Rubio Fox News. “I think it would be a large -scale escalation that deserves an answer not only from us but also from others.”
The fifth US fleet is located in Bahrain and instructed to defend marine trade in the Gulf. Petroleum market participants usually believe that the US Navy quickly runs out any Iran’s attempt to block the Hormuz Strait. But some analysts warn that the market is underestimated by the risk.
“In our opinion, they can break, delivered by the mountains much longer than the market thinks,” said Bob McNali, founder of Rapidan Energy and former Presidential Energy Advisor.
Delivery can be interrupted within weeks or months, McNali said, not the opinion of the oil market that the US Navy will resolve the situation in hours or days.
The US will eventually prevail, but “it won’t,” McNally said CNBC.
