In the ongoing Strait of Hormuz crisis, which began over a month ago with US and Israeli strikes on Iran, the strait reopened briefly before closing again this week. Oil prices remain elevated at US$100-105 per barrel, hitting China's transport and manufacturing sectors. Companies are delaying or cancelling orders to shield consumers from higher costs.
The Strait of Hormuz crisis has persisted despite a fragile two-week ceasefire between Iran and the United States, with the vital waterway reopening and closing again this week. This volatility has driven Brent crude to US$100-105 per barrel—up from around US$70 before the conflict escalated—filtering through to processed fuels and petroleum-based materials essential for China's massive manufacturing base.
Industry insiders doubt near-term stability. “Some companies have begun delaying or cancelling orders to avoid passing higher costs to consumers,” said Wang Chao, senior analyst at Guangzhou Quantitative Consulting. Impacts extend beyond factories: cross-border e-commerce shipments are affected, and in home appliances, elevated freight costs have dampened end-market demand, leading overseas buyers to scale back or postpone purchases, Wang added.
These pressures highlight China's vulnerability as the world's top manufacturing hub amid the broader Asian oil import reliance exposed since the blockade began.
