Key facts
- An uneasy calm is present in the Strait of Hormuz after a US-Iran ceasefire.
- Fishermen have returned to the waters of the Strait of Hormuz.
- Seized ships remain in the Strait of Hormuz.
- Evidence of recent conflict, including a destroyed apartment block, is visible in the Strait of Hormuz.
- China is benefiting from the conflict involving Iran and the global oil shortage.
- China is selling oil from its strategic reserves.
- China's strategy of selling from strategic reserves is expected to last approximately three more weeks.
- Global oil prices are high due to the conflict.
The Strait of Hormuz is experiencing an uneasy calm in the weeks following a US-Iran ceasefire agreement. While fishermen have resumed their activities in the waters, evidence of recent conflict, including a destroyed apartment block, remains visible. Seized ships are also still present in the strait, indicating the lingering effects of the hostilities.
Amidst this backdrop, China has emerged as a relative beneficiary of the conflict involving Iran and the resulting global oil shortage. The nation has been capitalizing on high oil prices by selling oil from its strategic reserves. This strategic move is anticipated to continue for approximately three more weeks, as global oil prices remain elevated due to the ongoing instability.