Xi Jinping has been preparing for a crisis like this for years. China must secure its energy supply “in its own hands”, its president was reported to have said during a visit to one of its vast oilfields in 2021. The US-Israel war on Iran plunged the Middle East into a deep conflict, with the strait of Hormuz – one of the most important waterways in global trade – all but closed and key energy facilities across the region under attack. Oil exports from the Middle East have tumbled 61%…
Tag: Oil
Iran’s Hormuz blockade is its most powerful card against Trump and Israel. It won’t back down easily | Jack Watling
The US and Israeli decision to attack Iran has sent economic shockwaves around the world. About 20% of global oil supplies have been effectively blocked from transiting the strait of Hormuz since Iran began attacking ships, resulting in a huge jump in oil prices. Militarily, while the United States has the firepower to significantly reduce Iran’s capacity to use the strait as leverage, it is unlikely to be able to eliminate the threat entirely. Reopening the strait, therefore, is not only a question of military capabilities but of diplomacy, and…
If oil price shocks weren’t bad enough, Trump’s war could have other unintended consequences | Adam Hanieh
With the US-Israeli war against Iran in its second week, energy markets are in turmoil. On Thursday, the price of Brent Crude Oil topped $100, only slightly lower than the $119 peak per barrel on Monday. These swings have focused attention on key energy choke points such as the strait of Hormuz, where about one-fifth of the world’s shipped oil and liquefied natural gas (LNG) passes each day. This shutdown of the strait will be felt in people’s everyday lives for months to come, particularly in the form of spiralling…
Will China own the green energy future? – podcast
The conflict in the Middle East has sent energy prices soaring, and for countries that import a high proportion of their fuel, it’s a reminder of the perils of energy dependence. As the recipient of almost 90% of Iran’s crude oil, China knows this only too well. Which partly explains why the country spent the last decade heavily investing in clean power. To find out what else could be driving the strategy, Madeleine Finlay speaks to senior China correspondent Amy Hawkins. And energy correspondent Jillian Ambrose reflects on how China’s…
China calls for vessels in strait of Hormuz to be protected amid soaring shipping costs
The Chinese government has called for vessels passing through the strait of Hormuz to be protected by all sides in the escalating Iran conflict, as shipping freight rates soared. Maritime traffic through the strait – a narrow channel on Iran’s southern border that connects the Persian Gulf with the Gulf of Oman – has effectively been closed since the US and Israel launched missile attacks on Iran at the weekend, prompting a retaliation from Tehran. Beijing’s foreign ministry on Tuesday urged “all parties to immediately cease military operations, avoid escalating…
US and Japan unveil $36bn of oil, gas and critical minerals projects in challenge to China
Japan has drawn up plans for investments in US oil, gas and critical mineral projects worth about $36bn under the first wave of a deal with Donald Trump. The US president and Sanae Takaichi, Japan’s prime minister, announced a trio of projects including a power plant in Portsmouth, Ohio, billed by the Trump administration as the largest natural gas-fired generating facility in US history. As a diplomatic row between Japan and China over the security of Taiwan continues, testing the Japanese economy, Takaichi said the projects would strengthen her country’s…
Trump threatens Canada with 100% tariff over possible deal with China
Donald Trump on Saturday said he would impose a 100% tariff on all Canadian imports if the North American country makes a trade deal with China. Beside that tariff threat, another Trump foreign policy maneuver to make news on Saturday involved the president announcing the US had taken the oil that was on recently seized Venezuelan tankers. The US president wrote on social media that if the Canadian prime minister, Mark Carney, “thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products…
US attack on Venezuela will decide direction of South America’s vast mineral wealth
The US’s first overt attack on an Amazon nation last weekend is a new phase in its extractivist rivalry with China. The outcome will decide whether the vast mineral wealth of South America is directed towards a 21st-century energy transition or a buildup of military power to defend 20th-century fossil fuel interests. Although this onslaught was ostensibly aimed at one corrupt dictatorship in a miserably dysfunctional country, the ramifications are far wider. Venezuela’s oil is the obvious – but not the only – objective. When the former Guardian journalist Seumas…
Russia and China pledge support for Venezuela as Trump ratchets up pressure on Maduro
China and Russia have expressed support for Venezuela as it confronts a US blockade of sanctioned oil tankers, while Donald Trump continues to ramp up his pressure campaign on the South American country’s president, Nicolás Maduro. Amid reports of slowing activity at Venezuelan ports, the US president again called for Maduro to leave power, and reiterated that the US would keep or sell the oil it had seized off the coast of Venezuela in recent weeks. Asked if the goal was to force Maduro from power, Trump told reporters: “I…
Putin says he will never bow to US but concedes sanctions may cause ‘some losses’
Vladimir Putin has said Russia will never bow to US pressure but conceded new sanctions could cause some economic pain, as China and India were reported to be scaling back Russian oil imports after Washington targeted Moscow’s two largest producers. The US on Wednesday imposed sanctions on Rosneft and Lukoil, as well as nearly three dozen of their subsidiaries, as the Trump administration increased pressure on the Kremlin to negotiate an end to its war against Ukraine. The EU separately discussed a loan for Ukraine secured on frozen Russian assets…