Every time there is tension in the Middle East, we read that Iran will close the Strait of Hormuz. It is important to remind readers that Iran has never actually shut down the strait. It has threatened to do so many times but has never followed through. Moreover, a closure of the Strait of Hormuz would primarily hurt China, as about 76% of traffic through it goes to the Asian giant, with less than 4% going to the United States and around 7% to the European Union.
China is one of the few key partners of the Iranian regime, purchasing close to 90% of Iran’s exports. A shutdown would therefore damage China the most, which is precisely why it is unlikely to happen. Oil exports via the Strait of Hormuz by country also show that one of the largest negative impacts would be on Iran itself, which ships around 2.3 million barrels per day of crude and products through this route.
Continue reading Iran Attack Escalation May Hurt China’s Economy More Than Anyone
