As the United States and Iran continued to trade attacks for a 14th consecutive day, China has called on Pakistan to mediate between the two countries, drawing attention. The move reflects China's assessment that, as the world's largest crude oil importer, it is beginning to suffer real damage from the closure of the Strait of Hormuz.
Reuters reported on the 24th that China had directly contacted Pakistan to request mediation as the conflict between the US and Iran intensified. According to a Pakistani source, China asked for mediation efforts to ease tensions between the US and Iran when Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar visited Shanghai on the 16th. A Pakistani government official told Reuters, "China is unhappy because it believes Iran's attacks on Gulf states and the closure of the Strait of Hormuz are harming its interests."
Reuters reported that Pakistan indeed met with Iranian Interior Minister Eskandar Momeni, who visited the country this week, in an attempt to resume the stalled negotiations between the US and Iran. A Pakistani official said, "We delivered a message to Iran that attacks on Saudi Arabia and Gulf countries must stop for talks to resume."
China also directly urged Iran to implement the ceasefire memorandum of understanding (MOU) and resume negotiations. Wang Yi, director of the Office of the Central Foreign Affairs Commission of the Communist Party of China and foreign minister, met with Iranian Foreign Minister Abbas Araghchi on the sidelines of the Shanghai Cooperation Organization (SCO) foreign ministers' meeting held in Kyrgyzstan that day. Wang stressed, "China is deeply concerned about the recent renewed tension and deterioration of the situation in the Middle East Gulf region."
In financial markets, expectations over these developments pushed international oil prices lower for the first time in six trading sessions that day. On London's ICE Futures Exchange, Brent crude for September delivery fell 3.88% from the previous session to $96.78 per barrel. On the New York Mercantile Exchange, US West Texas Intermediate (WTI) crude for September delivery also closed down 3.12% at $89.31 per barrel.
