China Pushes Iran to Reopen Hormuz Amid $109 Oil Prices Ahead of US-China Summit

Chinese Foreign Minister Wang Yi met with his Iranian counterpart Abbas Araghchi in Beijing on September 16, 2026, to discuss stabilizing energy routes and de-escalating regional tensions. The talks centered on the Strait of Hormuz, a vital maritime artery for global energy, which has seen repeated disruptions causing significant volatility in international fuel markets.

The Chinese leadership is pushing for a resumption of substantive negotiations to prevent further escalation that could spill into Yemen and the Red Sea, threatening broader maritime trade. Beijing has urged both Tehran and Washington to return to the Islamabad Memorandum of Understanding, an interim diplomatic framework established in June 2026, as China seeks to mitigate the economic risks posed by the ongoing conflict in the Middle East.

The development is particularly relevant for India, a large importer of crude oil, which is sensitive to supply chain bottlenecks in the Middle East. Elevated energy prices generally translate into higher import bills, which can put pressure on the rupee and influence domestic fuel inflation. Companies in energy-intensive sectors may face margin pressure when oil prices spike.