China Reportedly In Talks With Iran To Allow Oil Through Hormuz

• China is urging Tehran to permit safe passage for vessels. 
• Earlier in the week, Iran's government announced that vessels from the United States, Israel, European countries, or their allies would be barred from passing through the Strait of Hormuz
• The Strait of Hormuz caters to 20% of the global supply of oil and LNGs to the world. 

China is reportedly in talks with Iran to give crude oil and Qatar’s liquefied natural gas vessels a safe passage through the Strait of Hormuz ​, as tensions escalate due to the U.S.-Israel-Iran war.

The war disrupted the supply of oil and liquefied natural gas through the shipping route that caters to about 20% of global supply. 

Details

China, which enjoys amicable relations with Iran and is highly dependent on Middle Eastern imports, is displeased with Iran's efforts to disrupt shipping through the Strait and is urging Tehran to permit safe passage for vessels, a Reuters report said, citing people familiar with the matter. 

Earlier in the week, Iran's government announced that vessels from the United States, Israel, European countries, or their allies would be barred from passing through the Strait of Hormuz. However, the statement did not reference China.

Oil Prices

U.S. crude oil prices during Thursday’s session jumped beyond $80 per barrel mark and hit a 52-week high according to data from CNBC. 

At the time of writing the price of West Texas Intermediate Oil was up 6.76% or $5.05 to $79.71 per barrel on Thursday. Meanwhile, global benchmark Brent also rallied 3.81% or $3.1 to $84.53. 

U.S. equities slumped on Wednesday. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 1.3%, the Invesco QQQ Trust ETF (QQQ) fell 1.1%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) slumped 2.1%. 

Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory at the time of writing.

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