U.S. calls on China to prevent Iran from closing Strait of Hormuz and disrupting global oil flows

U.S. Secretary of State Marco Rubio connected Sunday called for China to forestall Iran from closing the Strait of Hormuz, 1 of the astir important commercialized routes for crude lipid successful the world.

"I promote the Chinese authorities successful Beijing to telephone them astir that, due to the fact that they heavy beryllium connected the Straits of Hormuz for their oil," Rubio said successful an interrogation connected Fox News. China is Iran's astir important lipid lawsuit and maintains affable relations with the Islamic Republic.

Iran's foreign curate warned earlier Sunday that the Islamic Republic "reserves each options to support its sovereignty," aft the U.S. bombed 3 cardinal atomic sites implicit the weekend.

Iranian state-owned media, meanwhile, reported that Iran's parliament backed closing the Strait of Hormuz, citing a elder lawmaker. However, the last determination to adjacent the strait lies with Iran's nationalist information council, according to the report.

An effort to artifact the constrictive waterway betwixt Iran and Oman could person profound consequences for the planetary economy. Some 20 cardinal barrels per time of crude oil, oregon 20% of planetary consumption, flowed done the strait successful 2024, according to the Energy Information Administration.

Oil prices could sprout supra $100 per tube if the strait is closed for a prolonged period, according to Goldman Sachs and consulting steadfast Rapidan Energy.

Iran is the third-largest lipid shaper successful OPEC, pumping 3.3 cardinal barrels per day. The Islamic Republic exports astatine slightest 1.6 cardinal bpd, with astir 80% sold to China, according to the EIA.

Rubio said it would beryllium "economic suicide" for Iran to adjacent the strait. "We clasp options to woody with that," the U.S. caput of authorities said.

"It would wounded different countries' economies a batch worse than ours," Rubio said. "It would be, I think, a monolithic escalation that would merit a response, not conscionable by us, but from others."

The U.S. Fifth Fleet is stationed successful Bahrain and tasked with protecting maritime commercialized successful the Persian Gulf. Oil marketplace participants mostly judge the U.S. Navy would swiftly vanquish immoderate effort by Iran to artifact the Strait of Hormuz. But immoderate analysts pass that the marketplace is underestimating the risk.

"They could disrupt, successful our view, shipping done Hormuz by a batch longer than the marketplace thinks," said Bob McNally, laminitis of Rapidan Energy and erstwhile vigor advisor to President George W. Bush.

Shipping could beryllium interrupted for weeks oregon months, McNally said, alternatively than the lipid market's presumption that the U.S. Navy would resoluteness the concern successful hours oregon days.

"It would not beryllium a cakewalk," McNally told CNBC.