AiTelly
Is a potential US war with Iran and the blockade of the Strait of Hormuz actually a bold, strategic move to counter China? Well, let’s look at the data. During recent US-Iran tensions, 97% of Iranian oil tankers went directly to China. Just as a reminder, this is heavily discounted oil, as the rest of the world cannot buy from Iran due to international sanctions. So, how do you starve an industrial giant like China without actually invading it?
You cut off its oil supply. Doing this could theoretically level the playing field between China and other European and Asian nations. The US recognized that China relies heavily on oil from nations like Venezuela and Iran. So, the strategy plays out like this: first, if the US were to remove Nicolás Maduro from power, Venezuelan oil to China would be cut off.
The second target is Iran, where China gets a massive portion of its remaining oil supply. Interestingly, when Iran attempted to enforce a blockade on the Strait of Hormuz, President Trump countered by putting a ‘blockade on their blockade.’ Then, something fascinating happened: hundreds of oil tankers were forced to turn to the US for their oil—a market shift that has become much more active under the new Trump administration.
