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China Backs Hormuz Unimpeded Passage as Fee Dispute Grows

Bloomberg Markets •
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China called for unhindered shipping through the Strait of Hormuz as European powers prepare to accept that vessels may need to pay fees to Iran and Oman. Foreign Ministry spokesman Guo Jiakun emphasized the need for early resolution to safeguard global interests. The comments come amid growing acceptance in European capitals that some form of service charges will be necessary after the conflict with Iran. Gulf Arab officials privately concur, though government positions remain unclear.

European and Gulf officials acknowledge uncertainty around fee structures and amounts, with the U.S. and Gulf Arab nations insisting Iran and Oman cannot impose charges. This stance risks setting precedents for other waterways. The dispute centers on who bears costs for protecting shipping lanes after the recent war. Beijing's intervention reflects its reliance on Middle Eastern energy supplies, as Hormuz handles roughly 21 million barrels of oil daily.

China's call underscores its vulnerability as the world's largest oil importer. Any fee regime could raise transport costs for Chinese refiners and increase energy prices domestically. The Asian giant imports roughly half its oil through Hormuz, making the Strait critical to economic stability. With tensions unresolved, China is balancing diplomatic pressure while securing energy flows.

The fee debate reveals fractures among allies. While the U.S. opposes charges, European nations appear resigned to paying for security. Gulf states worry about precedent risks. For now, China presses for unimpeded passage, knowing its economy depends on keeping crude flowing through a narrow strip of water.