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News Topical, Digital Desk : The US's strict blockade of the Strait of Hormuz has further escalated tensions in West Asia after peace talks in Islamabad failed.
The impact of this move is not limited to Iran, but could also affect a major country like China, which is the largest buyer of Iran's oil. This raises the question of whether China could also become indirectly involved in this conflict.
The US has imposed a comprehensive blockade on all Iranian-linked shipping in the Strait of Hormuz. According to US Central Command, this blockade is not limited to any one country but will apply to all ships transiting through and from all Iranian ports.
While Iran previously allowed ships from some "friendly" countries to pass through, the US has now imposed strict controls. This is expected to have a major impact on maritime trade. This move could have the greatest impact on China-Iran trade, as China is the largest buyer of Iran's oil and the two countries have deep economic ties.
How strong are China-Iran relations?
China buys about 90 percent of Iran's oil exports, earning Iran about $31.2 billion annually, which is crucial to its economy.
Approximately 45 percent of Iran's government budget comes from this oil trade, in which China plays a major role. This means that if this trade is affected, Iran's economic situation will be directly affected.
In 2021, China and Iran signed a major 25-year agreement, estimated to be worth approximately $400 billion. Under this agreement, China receives a steady supply of oil in exchange for investment and security cooperation.
Oil trading and the discount game
China buys cheap oil from Iran. It receives a discount of $8 to $10 per barrel. This is why Iranian oil is so profitable for China. In 2025, China imported approximately 1.4 million barrels of Iranian oil per day, representing approximately 12 percent of its total imports.
This data shows that Iran plays a significant role in China's energy needs. Although Iran is subject to numerous international sanctions, full data on actual trade between the two countries is not publicly available. It is clear that China leads the way in this trade.
Why is America worried?
The US believes that China continues to trade with Iran despite sanctions. According to one report, China officially reported trade volumes of approximately $9.96 billion in 2025, but this figure does not include actual Iranian oil.
If oil trade is included, it could account for more than 75 percent of total trade. This is why the US wants to weaken this relationship. The US also claims that China helps Iran access technology needed for its drone and weapons programs, using shell companies in Hong Kong and other countries to do so.
Accusations against China and Trump's warning
US President Donald Trump has warned China that it could face tariffs of up to 50 percent if it provides military assistance to Iran. The US also alleges that China conceals the true source of Iranian oil, claiming it comes from Malaysia, Oman, or the UAE to avoid sanctions.
The oil is transported using a 'shadow fleet', i.e. old ships that change flags to conceal their identity, turn off tracking systems and transfer oil from ship to ship at sea.
Could China join the war?
China is not directly involved in this war, but its economic interests are linked to Iran. If the US blockade continues for a long time, it could be a major setback for China. In such a situation, China could increase its support for Iran diplomatically or economically, but direct military intervention is currently considered unlikely.
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