Marco Rubio Urges China To Intervene, Calls Strait Of Hormuz Closure 'Economic Suicide' For Iran: 'We Retain Options To Deal With That'

U.S. Secretary of State Marco Rubio has called on China to prevent Iran from shutting down the Strait of Hormuz, a crucial trade route for global crude oil. Rubio’s warning comes amid escalating tensions in the Middle East.

What Happened: Rubio called on the Chinese government, which has close ties with Iran, to step in. “I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil,” Rubio said during a Fox News interview.  

“It's economic suicide for them if they do it.  And we retain options to deal with that,” added Rubio.

China is Iran’s primary oil customer and maintains a friendly relationship with the country.

Following U.S. airstrikes on three key nuclear sites, Iran’s foreign minister warned that the Islamic Republic “reserves all options to defend its sovereignty.” Iran’s parliament has backed the idea of closing the Strait of Hormuz, but the final decision lies with Iran’s national security council.

The Strait of Hormuz is a vital trade route, with approximately 20 million barrels of crude oil passing through it daily, accounting for 20% of global consumption. If the Strait were to close for an extended period, oil prices could soar above $100 per barrel, according to experts.

Why It Matters: The recent U.S. strikes on Iran’s nuclear facilities have sparked concerns about the potential repercussions on global oil prices. China, a key player in this scenario, has warned of a spiraling escalation in the Middle East and demanded an immediate ceasefire at the UN. This situation has the potential to significantly impact global oil prices, as market analysts and traders assess the situation.

Earlier, the CEO of Shell, Wael Sawan, had expressed concern over the escalating conflict between Israel and Iran, warning of a potential “huge impact on global trade.” The Strait of Hormuz, a major artery for the world’s oil trade, is of strategic importance, and any blockade could send shockwaves through the energy market.

Meanwhile, energy analytics firm Kpler stated that oil prices may surge between 7-10% post US airstrikes on Iran but it may not ‘last’.

China’s response to the U.S.’s call and the subsequent actions in the region will be closely watched by the global community, especially given China’s significant role in the global oil trade.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.