China urges safe Strait passage as Hormuz sees 34 daily transits

China urged the restoration of safe passage through the Strait of Hormuz on Thursday, as the waterway carrying one-fifth of global oil trade remains only partially operational despite a US-Iran ceasefire signed two weeks ago.

"The Strait of Hormuz is used for international navigation, and restoring its safe, free passage as soon as possible serves the interests of all parties," Guo Jiakun, spokesperson for China's Foreign Ministry, said at a regular briefing in Beijing.

Just 34 commercial vessels transited the Strait on Tuesday, according to MarineTraffic data, compared with 40 the prior day. The Islamic Revolutionary Guard Corps has warned ship captains that passage through non-approved routes could invite attack, and a foreign container ship ran aground this week while using an unauthorized path, Iranian state television reported.

The cautious reopening leaves global energy markets exposed to renewed disruption. Any sustained attacks on commercial shipping could reverse the decline in oil prices seen since the June 17 ceasefire and reignite fears of supply shortages, analysts said.

A Fragile Ceasefire Under Strain

The US and Iran signed a memorandum of understanding on June 17 that required the immediate reopening of the Strait and launched a 60-day negotiating process toward a broader agreement on Iran's nuclear program and regional security. Yet President Donald Trump on Friday accused Iran of a "foolish violation" after an Iranian attack drone struck a commercial cargo vessel transiting the waterway, damaging the upper deck.

Iranian officials have continued to assert that Tehran maintains operational control over navigation. A deputy foreign minister said Friday that safe passage through "parallel routes" could not be guaranteed and that commercial shipping must use transit corridors approved by Iranian authorities. Tehran has also argued that foreign military deployments in the Persian Gulf contribute to regional instability.

The last time the Strait faced a sustained disruption was during the Iran-Iraq War in the 1980s, when the Tanker War saw Kuwaiti vessels reflagged under US protection. That conflict ultimately ended without any permanent change to the Strait's status as an international waterway.

Shipping Costs Rise as Uncertainty Persists

Ocean carriers have imposed emergency surcharges to cover additional operational costs. Hapag-Lloyd is applying a Middle East emergency surcharge ranging from $300 for a 20-foot container from Jebel Ali to other UAE ports to $6,100 per container from Indian ports to Kuwait, effective for cargo already in transit. Maersk raised its peak season surcharge from Asia to the Middle East to $500 for 20-foot containers and $1,000 for 40-foot containers, effective July 1.

Iran has insisted on joint sovereignty over the Strait along with Oman, a US ally, and has proposed collecting transit fees from shipping companies. Omani officials recently delivered a formal proposal to the US and other Western allies outlining a plan for service fees tied to de-polluting the waterway, according to the New York Times.

China's intervention signals growing concern among major energy importers about the reliability of the Strait. Beijing relies on Middle Eastern crude for a significant portion of its oil imports, and any sustained disruption would directly affect Chinese refiners and the broader economy. The Foreign Ministry's statement positions China as a diplomatic stakeholder in the outcome, potentially opening the door for Beijing to play a mediating role alongside Qatar and Pakistan, which have already served as intermediaries in the US-Iran talks.

This article is for informational purposes only and does not constitute investment advice.