Kathmandu. US Secretary of State Marco Rubio has urged China to stop Iran from shutting down one of the most vital maritime lanes in the world, the Strait of Hormuz.

His remarks followed a report by Iran’s state-run Press TV that the parliament had authorized a proposal to close the Strait, but that the Supreme National Security Council still had the last say.

The economy would suffer greatly from any interruption in the oil supplies. China, in particular, has a tight relationship with Tehran and is the biggest customer of Iranian oil worldwide.

After the United States attacked Iranian nuclear sites, oil prices increased, with the benchmark Brent crude price hitting its highest level in five months.

In an interview with Fox News on Sunday, Rubio stated, “They heavily depend on the Straits of Hormuz for their oil, so I encourage the Chinese government in Beijing to call them [Iran] about that.”

“They will commit economic suicide if they close the straits.” We still have choices for handling that, but other nations ought to consider it as well. The effects on other nations’ economies would be far more severe than on ours.
Major Middle Eastern oil and gas producers use the Strait of Hormuz to move energy from the region, and the canal is traversed by about 20% of the world’s oil.

Any attempt to interfere with Strait operations might cause oil prices to soar worldwide.

When trade started on Monday, oil prices quickly surged, with Brent rising to $81.40 per barrel. But after that, it fell back to about $78—up 1.4% for the day.

“To be ready for any Iranian counterattacks, the US has established an overwhelming defense posture in the area. However, there is a chance that things will get much worse for oil prices,” stated Saul Kavonic, MST Financial’s head of energy research.