China Secures Safe Passage Through Red Sea, Bolsters Iran Ties

China has secured agreements with the Houthi rebels in Yemen to allow its tankers safe passage through the Red Sea, while also establishing a formalized system for ships traversing the Strait of Hormuz.

The move is seen as a strategic advantage for China, which has been a key customer for Iranian oil throughout the US-Iran conflict. According to Kpler shipping data and The Wall Street Journal, Chinese tankers have been importing oil from Iran through a floating reserve off Malaysia, circumventing US sanctions.

China's demand for Iranian oil declined significantly after the war began, but its share of China's total imports increased to over 24% in May and 18% in June. The country is also buying oil from Saudi Arabia.

Beijing's efforts to secure safe passage through Bab el-Mandeb and access to cheap crude have strengthened its strategic position. A reported deal between Iran and China for up to 400 Chinese-made shoulder-fired air defense missiles could further boost Tehran's defenses against the US and Israel.