US-China Tensions Rise as Oil Flows Through Hormuz Provide Relief

The US is stepping up economic pressure on Iran while also striking Tehran in the Strait of Hormuz, but Washington faces a difficult balancing act. Cutting off Iran's oil revenues could hurt Tehran, yet disrupting too much oil supply from the Gulf could push global crude and gasoline prices higher.

Shipping through the Strait of Hormuz remains heavily disrupted, with many shipowners unwilling to risk attacks. Before the war, around 130 vessels crossed the waterway each day, but traffic has since fallen to only a small fraction of it.

Crude tanker traffic has also dropped sharply. According to Kpler data cited by CNN, only around two to three Very Large Crude Carriers (VLCCs) have crossed the strait each day since July 7, compared with roughly eight daily before the war.

Despite the disruption, oil has not completely stopped moving out of the Persian Gulf. Some tankers are using alternative routes and other methods to keep supplies flowing. Beijing is particularly important to Washington's attempt to cut off Tehran's remaining sources of oil revenue as China bought more than 80% of Iran's total oil exports in 2025.

US Treasury Secretary Scott Bessent has called on Beijing to join Washington's campaign to economically isolate Iran, South China Morning Post reported. He pointed out that China gets around 50% of its energy from the Gulf, while Gulf countries accounted for 27.6% of China's crude imports in July, according to Chinese customs data.