The signing of the first-stage US-Iran memorandum of understanding, noted by Chinese Foreign Ministry spokesman Lin Jian, signals a strategic shift primarily benefiting China, which has positioned itself to profit from the US-Iran peace without direct military involvement. This agreement is crucial for restoring global energy flows and ending regional conflict, particularly impacting the Strait of Hormuz, the world’s most critical energy corridor.
In 2025, nearly 15 million barrels of crude oil per day (34% of global seaborne crude trade) and one-fifth of global liquefied natural gas (LNG) trade transited this strait, with 83% of LNG destined for Asian markets. China, heavily reliant on Gulf crude (50% of its imports in 2025), views Middle East stability through an energy security and commercial lens. Beijing's strategy includes expanding strategic petroleum reserves, long-term energy partnerships, and Belt and Road Initiative investments, exemplified by its 25-year cooperation agreement with Iran and facilitating the 2023 Saudi-Iran rapprochement. The deal's sanctions waivers for Iranian oil and a proposed $300 billion private Reconstruction and Development Fund will channel investment into Iran's energy, logistics, manufacturing, and transport sectors, reinforcing stability and commercial incentives for China and other Asian powers.
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