Key facts
- Iran's Parliament Speaker met with economic ministers to align economic strategy toward China.
- Officials agreed to submit proposals to deepen cooperation with China.
- China is being positioned as Iran's 'principal strategic partner'.
- Iran has tripled its rail exports of oil and LPG to China to bypass US sanctions.
- China-linked vessels transit the Strait of Hormuz under an Iranian 'management protocol'.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf convened a meeting with key economic officials, including the ministers of economy, oil, and industry, the central bank governor, and the head of the Plan and Budget Organization, to strategize Iran's economic relationship with China. The objective is to solidify China as Iran's 'principal strategic partner' and coordinate economic priorities amidst US-Israeli tensions and a de facto closure of the Strait of Hormuz to US and Israeli vessels. Participants agreed to develop proposals to overcome challenges and enhance bilateral cooperation. In parallel, Iran has significantly increased its rail exports of oil and liquefied petroleum gas (LPG) to China to circumvent US sanctions, with freight trains now departing every three to four days on a 10,400-kilometer corridor. While this rail capacity is a fraction of maritime shipping, it represents an effort to mitigate the economic impact of the US blockade on Iranian ports. The Strait of Hormuz remains largely closed to US and Israeli traffic, though China-linked vessels have been permitted passage under a 'management protocol' established by Iran's IRGC Navy.