A Chinese supertanker laden with two million barrels of Iraqi crude oil was reportedly navigating the Strait of Hormuz on Wednesday, according to ship-tracking data from LSEG and Kpler. The Very Large Crude Carrier (VLCC) Yuan Hua Hu was observed passing Iran's Larak Island on the eastern side of the strait and heading south.
Third Known Passage Since Conflict Began
This voyage, if successful, would mark the third known passage by a Chinese oil tanker through the Strait since the US-Israeli war with Iran began on 28 February. The development coincides with Iran's apparent efforts to solidify control over the Strait, having recently struck deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region, sources suggest. Other nations are reportedly exploring similar arrangements, potentially normalizing Tehran's long-term command of the vital waterway.
The VLCC is owned by COSCO Shipping Energy Transportation's Hainan unit and chartered by Unipec, the trading arm of Chinese state oil major Sinopec. Neither COSCO Shipping Energy Transportation nor Sinopec immediately responded to requests for comments.
Stranded Since March
The Yuan Hua Hu loaded nearly 2 million barrels of Basrah Medium crude at Iraq's Basrah terminal in early March and has remained stranded inside the Gulf since then, according to the tracking data. It is headed to Asia. China-flagged VLCCs Cospearl Lake and He Rong Hai exited the Strait of Hormuz on 11 April.
Global Economic Impact
Iran's grip on the Strait of Hormuz has jolted the world economy, causing a spike in fuel prices that has rippled through other sectors with effects far beyond the Middle East. It has also left tens of thousands of mariners and hundreds of ships stranded in the Persian Gulf. According to the US military, 1,550 vessels from 87 countries are currently stranded in the Persian Gulf, and 22,500 mariners are stranded on these ships, including many from South and Southeast Asia.
Iran effectively seized control of the critical waterway after the US and Israel attacked it on 28 February. Weeks of heavy bombing and a US naval blockade imposed last month have yet to loosen its grip. Iran says it will only reopen the strait if the war ends and the blockade is lifted. US President Donald Trump is seeking wider concessions, including the rollback of Iran's disputed nuclear program.
