China is reportedly in direct talks with its ‘rogue’ ally Tehran to maintain safe passage through its vital Iranian crude transit point Strait of Hormuz, which may have just immediately nullified the reported ‘blockade’ (a blockade which Iran officially denies, but which has been heavily threatened). Reuters confirms: “China is in talks with Iran to allow crude oil and Qatari liquefied natural gas vessels safe passage through the Strait of Hormuz ​as the U.S.-Israeli war on Tehran intensifies, three diplomatic sources told Reuters.” We note before there’s been ample speculation that Iran would allow Chinese and Russian tankers to transit, which would also immediately change the equation as it would unlock substantial on-water storage capacity (as a reminder, China is by far the biggest end market for Gulf and certain Iranian output). However, until this is an official policy ammounced by Iran it remains purely speculation. But this new development of Tehran-Beijing talks points in that direction. Things continue to move fast: Treasury Expected To Announce Measure As Soon As Thursday To Combat Rising Energy Prices That Includes Using Oil Futures Market – Senior White House Official From Israel, there are officials floating the possibility of a more direct military intervention against Iranian export […]