China will work behind the scenes to help reopen the Strait of Hormuz, Bessent says
China will use its influence on Iran to help reopen the Strait of Hormuz, U.S. Treasury Secretary Scott Bessent told CNBC in an interview Thursday.
"It's very much in their interest to get the strait reopened," Bessent told CNBC's Joe Kernen. "I think they will be working behind the scenes to the extent anyone has any say over the Iranian leadership."
China is the largest crude oil importer in the world. About 10% of its imports came from Iran and more than half came from the Middle East in 2024, according to the U.S. Energy Information Administration. Nearly all of Iran's crude oil exports go to China, the Treasury secretary said.
"China has a much bigger interest in reopening the strait than the U.S. does," Bessent told CNBC.
President Donald Trump held talks with President Xi Jinping during a two-day summit in Beijing on Thursday. A White House official said the leaders agreed Hormuz needs to reopen.
"The two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy," the White House official said. "President Xi also made clear China's opposition to the militarization of the Strait and any effort to charge a toll for its use."
Iran has blockaded the strait since early March in response to U.S. and Israeli airstrikes that killed many of its leaders, including its head of state, Ayatollah Ali Khamenei. The blockade has cut off Persian Gulf oil exports to the global market, triggering the biggest supply disruption in history. Some 20% of the world's crude oil transited through the strait before the war.
Tehran is now claiming control over the narrow sea lane, which has been a key sticking point in stalemated peace talks with the U.S. It has reportedly sought to implement a toll system for ships to cross Hormuz.
Chinese state media reports, however, did not specifically mention Hormuz as a topic of discussion between Trump and Xi. The leaders "exchanged views on major international and regional issues, such as the Middle East situation," according to state news agency Xinhua.
The U.S. has imposed a blockade against Iranian ports in an effort to pressure Tehran into an agreement. No oil has been loaded at its main export terminal, Kharg Island, in the past three days, Bessent said. The U.S. believes Iran's storage tanks are full, he said.
"None of the ships are getting out, none are coming in, so they're not able to store oil on the water," according to the Treasury secretary. "They're going to start shutting down the production. We can see that's happening from satellite photos."
Bessent told CNBC that China is interested in buying more U.S. energy in response to the supply disruption in the Middle East. China and other nations are looking for more stable sources of energy, the Treasury secretary said.
The U.S. plans to ramp up oil and liquefied natural gas exports from Alaska, a natural place for China to import energy from, due to its geographic proximity, the Treasury secretary said.
"We think that not only China, but countries all around the world are going to look to diversify away from the Middle East for more stable sources of energy and what better place than the U.S.," Bessent said.