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Sources: China and Iran in talks to ensure safe oil and gas transit through Hormuz

China and Iran are in negotiations to allow Qatari LNG vessels and crude oil ships through the Strait of Hormuz, as the U.S./Israeli war against Tehran intensifies.

The war has now entered its sixth day, and the vital shipping passageway is all but closed. Countries around the globe are cut off from one fifth of the global oil and LNG supplies.

According to sources, China, which enjoys friendly relations with Iran, and relies heavily upon Middle Eastern products, is upset by the Islamic Republic's decision to paralyze?shipping across the Strait. It is pressuring Tehran to allow safe passage to vessels.

About 45% of the oil used by the world's second largest economy comes from this Strait.

Ship tracking data revealed that a vessel called the Iron Maiden, after switching its signalling from 'China-owner' to 'Iron Maiden' overnight, passed through the Strait. However, far more sailings are needed to 'calm' global markets.

Since the beginning of the conflict, crude oil prices have risen by more than 15 percent amid production stops as Iran attacks energy facilities in Gulf and ships crossing Strait.

The missiles of the Assad regime have reached countries as far away as Cyprus, Azerbaijan, and Turkey. This has destabilised global markets, and prompted major economies to issue warnings about inflation.

Vortexa's vessel tracking data revealed that the number of crude tankers transiting the Strait dropped to just four on March 1, a day after hostilities erupted, from an average of 24 vessels per day since January.

According to Vortexa, and Kpler, there are still around 300 oil tanks in the Strait.

Mike McDougall, a sugar?industry veteran, told Middle East sugar executives that there are currently?some ships? transiting the Strait. All of them are either Chinese or Iranian owned.

Jamal Al-Ghurair of Al Khaleej Sugar in Dubai said that some sugar-carrying ships are allowed to cross the Strait, while others aren't, without providing any further details.

The Iranian government announced earlier this week that vessels from the United States, Israel and European countries or their allies will not be allowed to pass through the Strait of Hormuz. However, the statement did not mention China. Reporting by Jonathan Saul, Marwa Rashad. May Angel and Sarah El Safty contributed additional reporting; writing by May Angel. Editing by Nick Zieminski.

(source: Reuters)