Shared energy stakes call for greater China-India cooperation
Why it matters: Disruptions in the Strait of Hormuz directly impact 5 million to 6 million barrels per day of China's oil imports.
- Chinese Foreign Minister Wang Yi warned of "immeasurably serious consequences" if energy and nuclear facilities are targeted in the Middle East conflict, echoing his earlier message for China and India to be partners, not rivals.
- India’s Ministry of External Affairs spokesperson Randhir Jaiswal highlighted that safeguarding reliable energy supplies for 1.4 billion citizens is New Delhi’s foremost concern, emphasizing diversification as a core strategy.
- The Strait of Hormuz, a critical corridor for roughly 20 million barrels of oil and nearly one-fifth of global LNG trade, has seen slowed tanker traffic and rising insurance costs due to widening conflict in West Asia.
- Oil markets reacted sharply, with Brent crude briefly surging above $110 per barrel and European natural gas prices jumping approximately 60% after Qatar halted LNG shipments.
- China and India together account for over one-third of global energy demand growth and are heavily dependent on imported hydrocarbons from the Middle East, with about 45% of China's and 50% of India's oil imports passing through the Strait of Hormuz.
Chinese Foreign Minister Wang Yi has issued stark warnings about the "immeasurably serious consequences" of targeting energy facilities amid the expanding Middle East conflict, while also urging China and India to collaborate as partners rather than rivals. This call for cooperation resonates deeply as both nations, the world's largest developing economies, face shared energy security concerns, with India's Ministry of External Affairs emphasizing the critical need to diversify energy supplies for its 1.4 billion citizens.
