Oil Price Slides Below $100 as China Defies US Hormuz Blockade

US oil prices fell back below $100 per barrel on Monday after a volatile session, reversing gains that pushed crude above $104 earlier in the day.

The sharp pullback came as China’s Defense Minister Admiral Dong Jun signaled that Chinese vessels would continue transiting the Strait of Hormuz under existing agreements with Iran.

China Challenges US Naval Blockade

Admiral Dong Jun delivered a pointed message to the Trump administration and the US Navy. He confirmed that Chinese ships are actively moving through the Strait of Hormuz and that Beijing will honor its trade and energy agreements with Tehran.

The statement reframes the standoff. What began as a bilateral US-Iran confrontation now involves a direct challenge from the world’s second-largest economy.

Analysts noted the repricing in oil markets reflects traders reassessing the blockade’s effectiveness now that China has entered the frame.

Notably, the US blockade of Iran affects China’s interests, as China is Iran’s largest oil export destination.

Trump Sets New April 27 Deadline

Speaking from the Oval Office, President Trump issued a fresh two-week ultimatum to Iran. He warned the situation “won’t be pleasant” if Tehran fails to reach a deal by April 27.

The deadline follows the collapse of US-Iran talks in Islamabad on April 12, which prompted Washington to declare a full naval blockade of the strait.

Brent crude had jumped more than 8% to above $103 following that announcement before reversing.

Markets now face a new variable. China’s willingness to test the blockade could determine whether oil stabilizes or enters another leg higher as the April 27 deadline approaches.

However, reports suggest that a tanker bound for China forced to turn back under the U.S. blockade.

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Source: https://beincrypto.com/oil-price-china-defies-us-hormuz-blockade/