Washington Examiner economics columnist Tiana Lowe Doescher said Iran and China are both “hurting” as economic and energy pressures mount from the Iran war, even amid the ongoing two-week ceasefire.
“Yeah, and it means that this ceasefire could be extended while there are further negotiations,” Doescher said Wednesday on Fox Business’s Mornings with Maria Bartiromo. “Because just remember: As much as this is hurting Iran’s economy, where you have 15 million rial to a U.S. dollar or whatever the insane equation is, it’s also hurting, most importantly, China, and Iran is a client state of China.”
Doescher warned that China would face severe economic strain under those conditions.
“The Chinese can’t afford to lose 50% of their oil imports from the Strait of Hormuz and have a 50% tariff levied by the U.S., which is what Trump has threatened,” Doescher said.
Multiple China policy experts and former Trump administration officials told the Washington Examiner that Beijing is unlikely to pursue a diplomatic resolution more aggressively while the U.S. blockades the Strait of Hormuz. Rather, China is structurally positioned to sit this out thanks to months of petroleum reserves, diversified energy sources, and access to discounted Russian oil.
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Ambassador John Bolton, who served as one of Trump’s national security advisers during his first term, said China has four months’ worth of petroleum supply, “so they can ride out ups and downs.”
The two-week ceasefire between the U.S. and Iran is about halfway through, as it is set to expire on April 21.