Hormuz Crisis: China Scores Geopolitical Win Amid Global Energy Turmoil

The ongoing shutdown of the Strait of Hormuz, sparked by the US-Israel air war against Iran, has unexpectedly handed China a significant geopolitical advantage, according to Kurt Campbell, co-founder of The Asia Group and a former US Deputy Secretary of State. While the conflict has triggered a global fuel crisis and immense economic pain for many nations, Beijing's long-term strategic planning has allowed it to weather the storm more effectively than its rivals, cementing its position as a steadier global player. China resilience stems from decades of proactive investments in energy security, including a robust network of diversified energy sources, substantial strategic petroleum reserves, and a dominant position in the burgeoning clean energy sector. Unlike many Asian economies grappling with skyrocketing fuel, fertilizer, and food prices, China has leveraged price controls and state support to shield its industries and consumers, keeping its manufacturing engine running. Meanwhile, Iran continues to assert control over the critical waterway, rejecting international proposals for new shipping lanes and demanding fees, further complicating global efforts to restore free passage. As the US and Iran navigate a shaky Memorandum of Understanding from June 18, 2026, aimed at a ceasefire and reopening the strait, renewed hostilities are slowing progress. The crisis not only validates China foresight in energy diversification but also accelerates the global pivot towards green energy, an arena where Beijing is already far ahead, deepening its geoeconomic influence. The world watches whether diplomatic efforts can stabilize this crucial chokepoint, or if China calculated advantage will continue to reshape global energy and trade dynamics for years to come.