China eyes regional cooperation as Hormuz disruptions shake markets

China has signalled its readiness to work with Southeast Asian countries to address growing concerns over energy security, as disruptions linked to the Middle East conflict continue to ripple through global markets.

Speaking in Beijing, Foreign Ministry spokesman Lin Jian said the current situation has dealt a “heavy blow” to global energy stability and called on relevant countries to immediately halt military operations to prevent further damage to global economic growth.

“China stands ready to strengthen coordination and collaboration with Southeast Asian countries and jointly address energy security issues,” Lin said, as per foreign media reports.

The statement comes as countries across Asia take additional measures to shield their economies from supply disruptions tied to the ongoing US-Israeli war with Iran. The conflict has significantly affected energy flows from Gulf producers, while also disrupting related markets, including fertilisers.

Urea prices rose by 1.58% on Wednesday, March 18, exceeding $610 per ton for the first time since October 2022, reflecting tightening supply conditions.

Tensions in the Middle East have remained elevated since the United States and Israel launched a large-scale military campaign against Iran, which has resulted in more than 1,200 deaths, including Iran’s Supreme Leader Ali Khamenei. In response, Iran has carried out drone and missile strikes across the region and has effectively restricted maritime traffic through the Strait of Hormuz, a critical route that typically handles around 20 million barrels of oil per day and roughly one-fifth of global liquefied natural gas trade.

Responding to a question about fertiliser supplies to the Philippines, Lin noted that China is both a major producer and consumer of fertilisers, as well as a key player in global trade. He added that exports continue after domestic demand is met.

By Tamilla Hasanova