China urges early reopening of Hormuz, Iran still demands the U.S. fulfill its commitments On September 16, Wang Yi met with Iranian Foreign Minister Aragchi in Beijing, urging the U.S. and Iran to remain rational and restrained, return to June's 'Islamabad Memorandum of Understanding,' and reopen the Strait of Hormuz as soon as possible. He also made it clear that China does not wish for the conflict to continue spreading to Yemen and the Red Sea. My personal understanding is that while China supports Iran in safeguarding its legitimate rights, it is also asking Iran to consider the energy and trade interests of other countries. The blockage of Hormuz has already impacted oil-importing countries, including China. If issues arise in the Red Sea, Saudi Arabia's export route of sending crude oil to the Red Sea via the East-West pipeline to bypass Hormuz will also be affected. Now, this pipeline itself has experienced a shutdown, and if shipping risks continue to escalate, the cost for importing countries to find alternative supplies will increase further. Aragchi also stated this time that Iran hopes to return to diplomatic channels for resolution and mentioned that Iran has developed a plan with Oman to reopen the Strait of Hormuz. However, Iran still demands that the U.S. fulfill its commitments. The June negotiation framework involved the U.S. lifting the maritime blockade, Iran resuming merchant ship navigation, and subsequent discussions on sanctions and nuclear issues. So even if Iran is willing to negotiate, the plan to reopen the strait is already in place. How the U.S. adjusts the blockade and how both sides implement their commitments still need to be resolved. No date for resuming navigation has been announced following this meeting. I’m more inclined to believe that this meeting has sent a positive signal for continued negotiations, and China has clearly expressed its concerns about the escalation of the conflict. However, whether oil prices can continue to fall will depend on whether the U.S. and Iran take concrete actions next. @Gate Crypto, U.S. stocks, Hong Kong stocks, Korean stocks, gold, CFDs, prediction markets—all in one platform.