The report by Iran’s Fars news agency came hours after Donald Trump and Chinese President Xi Jinping agreed during summit talks in Beijing that the Strait of Hormuz should remain open to ensure uninterrupted global energy supplies.

According to Fars, citing an informed source, the arrangement followed requests from China’s foreign minister and ambassador to Tehran. Iran subsequently agreed to facilitate the passage of a number of Chinese-linked vessels within what the report described as the framework of the two countries’ strategic partnership.

The report did not specify how many ships would be permitted to transit or whether broader restrictions on international shipping remained in place.Iran sharply tightened controls over movement through the Strait following the start of US and Israeli strikes on Feb. 28, significantly disrupting maritime traffic through one of the world’s most important energy corridors.

The situation worsened after a US blockade on Iranian ports began shortly after a ceasefire agreement reached in early April, prolonging instability across the Gulf region and affecting shipping routes responsible for roughly one-fifth of global oil and natural gas flows.It remained unclear how significantly the latest arrangement would alter maritime operations in practice.

During the conflict, Iranian authorities had already indicated that vessels considered neutral particularly those linked to China — could pass through the Strait if they coordinated movements with Iranian military forces.

Ship-tracking data showed that a Chinese supertanker carrying around 2 million barrels of Iraqi crude successfully passed through the Strait on Wednesday after being stranded in Gulf waters for more than two months due to the conflict.

The renewed movement of Chinese vessels through Hormuz highlights Beijing’s growing diplomatic and economic engagement in Gulf security issues as disruptions in the region continue to fuel volatility in global energy markets.

The report by Iran’s Fars news agency came hours after Donald Trump and Chinese President Xi Jinping agreed during summit talks in Beijing that the Strait of Hormuz should remain open to ensure uninterrupted global energy supplies.

According to Fars, citing an informed source, the arrangement followed requests from China’s foreign minister and ambassador to Tehran. Iran subsequently agreed to facilitate the passage of a number of Chinese-linked vessels within what the report described as the framework of the two countries’ strategic partnership.

The report did not specify how many ships would be permitted to transit or whether broader restrictions on international shipping remained in place.Iran sharply tightened controls over movement through the Strait following the start of US and Israeli strikes on Feb. 28, significantly disrupting maritime traffic through one of the world’s most important energy corridors.

The situation worsened after a US blockade on Iranian ports began shortly after a ceasefire agreement reached in early April, prolonging instability across the Gulf region and affecting shipping routes responsible for roughly one-fifth of global oil and natural gas flows.

It remained unclear how significantly the latest arrangement would alter maritime operations in practice. During the conflict, Iranian authorities had already indicated that vessels considered neutral — particularly those linked to China could pass through the Strait if they coordinated movements with Iranian military forces.

Ship-tracking data showed that a Chinese supertanker carrying around 2 million barrels of Iraqi crude successfully passed through the Strait on Wednesday after being stranded in Gulf waters for more than two months due to the conflict.

The renewed movement of Chinese vessels through Hormuz highlights Beijing’s growing diplomatic and economic engagement in Gulf security issues as disruptions in the region continue to fuel volatility in global energy markets.

Speaking at U.N. headquarters alongside diplomats from Gulf states and the United States, Alwasil urged support for a draft Security Council resolution demanding Iran halt attacks and remove obstacles affecting maritime traffic through the strait.“The Strait of Hormuz remains a vital artery of global trade and any disruption to its security is a matter of serious international concern,” Alwasil said.

He said the proposed resolution sought immediate international measures to “de-escalate tensions, ensure the free and safe flow of trade and humanitarian assistance, restore stability to global markets, and protect affected populations.”Alwasil warned that disruptions to shipping routes were affecting energy markets and delaying deliveries of food, medical supplies and humanitarian goods, particularly for import-dependent countries.

The Saudi envoy appeared alongside representatives from Bahrain, the UAE, Qatar and Kuwait, as well as Mike Waltz, who said freedom of navigation was central to global economic stability.

“We believe in some basic fundamental principles, namely the freedom of navigation for the entire world’s economies,” Waltz told reporters. “That’s what’s at stake here, nothing less than a cornerstone of worldwide stability and commerce.”Diplomatic sources said Russia, a permanent member of the Security Council and a close Iranian ally, warned it was prepared to veto the resolution.

Moscow and Beijing previously abstained on a March resolution condemning Iranian attacks on Gulf states and criticizing restrictions on shipping through Hormuz.

According to diplomats, the latest U.S.-Bahrain draft resolution calls on Iran to reopen the Strait of Hormuz, disclose the locations of naval mines, refrain from imposing transit tolls and allow the establishment of humanitarian shipping corridors for fertilizer and other essential cargo.

The Strait of Hormuz handles roughly one-fifth of global oil shipments and around one-third of global fertilizer trade, making it one of the world’s most strategically significant maritime chokepoints.

Commercial shipping traffic through the waterway has been heavily disrupted since conflict erupted on Feb. 28 following U.S. and Israeli strikes on Iranian targets. Regional instability has since fueled concerns over energy supplies, commodity prices and global food security.

In early April, Russia and China vetoed another Security Council proposal that would have encouraged coordinated international efforts to secure maritime navigation through the strait.

“The ceasefire is not over,” Hegseth told reporters during a briefing at the Pentagon, adding that U.S. forces would continue to defend maritime traffic while avoiding escalation. He said any determination of a ceasefire breach would rest with President Donald Trump.

The comments came as tensions mounted following reported exchanges of fire between U.S. and Iranian forces, underscoring the fragility of a truce reached after hostilities erupted earlier this year. The confrontation has centered on control and access to the Strait of Hormuz, a vital conduit for global energy shipments.

Trump on Monday announced the launch of “Project Freedom,” a military operation aimed at protecting commercial vessels transiting the waterway. Hegseth described the initiative as “defensive in nature, focused in scope and temporary in duration,” with the sole objective of shielding shipping from what he termed Iranian aggression.

“Iran does not control the strait,” Hegseth said, adding that U.S. forces would not need to enter Iranian territorial waters or airspace to carry out the mission. “We’re not looking for a fight.”Iran had effectively disrupted traffic through the strait after the conflict began on February 28, following the involvement of U.S. and Israeli forces, raising concerns over global supply chains and energy markets.

Hegseth cautioned Tehran to act prudently, reiterating Washington’s position that it seeks to prevent escalation while maintaining freedom of navigation through one of the world’s most strategically sensitive maritime corridors.

The warning came as negotiations between Tehran and Washington remain stalled following a ceasefire in the U.S.-Israeli conflict with Iran that took effect on April 8, with control of the strait a central dispute.

Trump said the operation, dubbed “Project Freedom,” would begin on Monday and described it as a humanitarian effort to assist crews stranded amid the disruption to shipping.

In a social media post, he said U.S. forces would work to guide vessels safely out of the waterway.In response, Iran’s military central command said any transit through the strait must be coordinated with Iranian forces, warning that “any foreign armed force especially the aggressive U.S. military” entering the area would be attacked, according to a statement carried by state broadcaster IRIB and attributed to Major General Ali Abdollahi.

The standoff has disrupted global energy flows, with Iran effectively restricting the movement of oil, gas and fertilizer shipments through the strait, while the United States has imposed countermeasures targeting Iranian ports. Maritime data cited by AXSMarine indicated that more than 900 commercial vessels were in the Gulf as of April 29.

The United States Central Command said the escort mission would involve guided-missile destroyers, over 100 aircraft, unmanned platforms and around 15,000 personnel.The United Kingdom Maritime Trade Operations said the maritime security threat level in the strait remains “critical” due to ongoing military activity, advising vessels to coordinate with Omani authorities and consider alternative routing.

Diplomatic efforts to resolve the crisis have so far yielded little progress. Iran has proposed a framework for negotiations, including reopening the strait and lifting blockades, while U.S. officials have indicated discussions are ongoing but have not detailed specific terms.European officials have urged a negotiated resolution, warning of the economic impact of prolonged disruption.

Emmanuel Macron called for a coordinated reopening of the strait, while Germany’s foreign minister Johann Wadephul stressed the need for Iran to restore navigation and address nuclear concerns.Oil prices have risen sharply, trading about 50 percent above pre-conflict levels amid supply constraints linked to the strait, a key global energy corridor.

Companies producing items such as plush toys, footwear, apparel and household goods say the effects of tighter oil markets are already filtering through supply chains, with suppliers raising prices for key inputs derived from petroleum.

Executives report early signs of cost inflation that could eventually be passed on to consumers if disruptions persist.Aleni Brands, a Florida-based manufacturer of soft toys made from polyester and acrylic fibers, said its Chinese suppliers increased material costs by 10% to 15% within weeks of the conflict’s escalation.

Chief Executive Ricardo Venegas said the company is absorbing higher costs for now but may raise prices in 2027 if conditions persist.Petrochemicals derived from oil and natural gas are used in more than 6,000 consumer products, according to the US Department of Energy, including items such as lipstick, pajamas, detergents, synthetic fabrics and medical supplies.

While the majority of crude oil is used as fuel, a significant portion is refined into chemical compounds that underpin modern manufacturing.Industry experts say crude oil, composed primarily of hydrocarbons, is processed into core petrochemicals such as ethylene, propylene and benzene, which form the basis of plastics, nylon and polyester.

These materials are widely used across sectors ranging from textiles to electronics and healthcare.Consultants note that material costs represent a substantial share of manufacturing expenses.

Andrew Walberer, a partner at Kearney, said raw materials can account for up to 30% of production costs for products such as garments, amplifying the impact of commodity price swings.

Trade groups warn that sustained oil prices above $90 per barrel could accelerate inflationary pressures across supply chains. The Footwear Distributors and Retailers of America estimates that petrochemical-based materials make up roughly 70% of synthetic footwear, with oil price fluctuations directly influencing around 30% of those costs.

The group projects retail shoe prices could rise by 1.5% to 3% in the coming months.Manufacturers are also adjusting procurement strategies. Rinseroo, which produces portable washing attachments using petroleum-based components such as polyvinyl chloride, said it increased its order volumes from China after being warned of a potential 30% cost increase.

Founder Lisa Lane said the company is exploring cost-cutting measures while delaying further price hikes after earlier increases linked to tariffs.In the healthcare sector, Gentell said it plans to raise prices by about 15% as costs for petrochemical-based adhesives and energy rise.

Chief Executive David Navazio estimated overall company expenses have increased by roughly 20%.Analysts say the broader economic impact of the conflict is already visible in higher fuel prices, which are feeding into transportation and logistics costs.

This is pushing up prices for goods moved by diesel-powered freight networks, as well as air travel costs due to rising jet fuel prices.

With supply disruptions now extending into their second month, industry participants say prolonged instability could lead to sustained cost pressures across global manufacturing, particularly for products reliant on synthetic materials and plastic-based components.

Iran’s Khatam al-Anbiya central military command said the vessel was en route from China when it came under attack, warning that Iranian forces would respond. A spokesperson described the incident as “armed piracy” and said retaliation would follow.U.S. President Donald Trump said earlier that a U.S.

Navy destroyer intercepted the ship, identified as the MV Touska, after it failed to comply with repeated warnings while attempting to breach a U.S.-imposed maritime blockade on Iranian ports.Trump said the vessel was disabled after the USS Spruance fired on its engine room and that U.S. Marines had taken control of the ship.

He added that the Touska was subject to U.S. Treasury sanctions due to a history of alleged illegal activity.The U.S. Central Command said the destroyer issued warnings over a six-hour period before using force to stop the vessel, marking the first such interception since the blockade began last week.

It added that U.S. forces have turned back at least 25 commercial vessels attempting to navigate the restricted waters.The confrontation comes amid heightened instability in the Strait of Hormuz, a critical route for global oil and gas shipments, which has remained largely closed since the outbreak of the U.S.-Israel conflict with Iran seven weeks ago.

Iran briefly reopened the strait on Friday following a ceasefire in Lebanon but shut it again within 24 hours, citing continued U.S. naval restrictions. The uncertainty has disrupted maritime traffic, with vessel tracking data showing tankers reversing course in recent days.Energy analysts warned that the renewed tensions could drive volatility in oil markets after a brief easing late last week.

Amrita Sen, founder of Energy Aspects, said developments over the weekend underscored the fragility of the situation and the risk of further escalation.

The incident adds pressure on diplomatic efforts to stabilize the region, with markets and governments closely monitoring the standoff for signs of either de-escalation or further conflict.

Wang told Tajani that China is prepared to work with Italy to unlock further “potential” in bilateral ties, signalling interest in deepening collaboration despite broader shifts in global trade dynamics.

China is open to expanding cooperation in areas including e-commerce, agriculture and food, healthcare and the development of industrial parks, the commerce ministry said, outlining sectors seen as key to future engagement.

The meeting reflects ongoing efforts by Beijing to sustain and diversify trade relationships with European partners, as global supply chains and geopolitical alignments continue to evolve.

Speaking at Tsinghua University, Sanchez said trade flows between China and the EU were “imbalanced” and called on Chinese authorities to open their markets to address a widening deficit. “We need China to open up so that Europe does not have to close itself off,” he said, adding that the deficit grew by 18 percent last year and posed risks over the medium to long term.

Sanchez’s visit, his fourth to China in four years, comes as Madrid seeks to position itself as a bridge between Beijing and the 27-member EU amid signs of strain in transatlantic relations. Recent tariff measures and policy shifts under Donald Trump have prompted several Western governments to pursue closer economic engagement with China.

Spain recorded a trade deficit of 42.3 billion euros ($49.1 billion) with China last year, with Sanchez noting that the shortfall accounts for 74 percent of the country’s overall trade deficit. Spain’s population of roughly 50 million contrasts with China’s more than 1.4 billion, underscoring the structural imbalance in bilateral trade.

The Spanish government is seeking improved access for agricultural and industrial exports and exploring opportunities for joint ventures in the technology sector. Officials also aim to attract Chinese investment into Spain and secure access to critical raw materials.

During the visit, Sanchez is scheduled to tour facilities linked to Xiaomi and the Chinese Academy of Sciences, before holding talks with senior Chinese leaders including President Xi Jinping and Premier Li Qiang.

The trip follows a period of diplomatic friction with Washington after Trump threatened to reduce trade ties with Spain, citing Madrid’s refusal to allow use of its military bases for U.S. strikes against Iran, a key Chinese economic partner.

Spain’s exports to China rose 6.8 percent in 2025, according to government data, reflecting strengthened bilateral engagement. During Sanchez’s previous visit in April 2025, Beijing agreed to expand market access for Spanish products including pork and cherries.

Chinese foreign ministry spokeswoman Mao Ning described Spain as “an important partner of China within the EU,” signaling Beijing’s willingness to deepen bilateral cooperation.

Sanchez’s trip highlights Spain’s effort to chart an independent foreign policy within Europe, positioning China as a strategic partner rather than a geopolitical rival, in contrast with Washington’s stance.

Trump has previously criticized Madrid over its refusal to grant landing rights for U.S. forces during the Iran conflict and for what he described as insufficient defence spending among NATO allies.

The Spanish leader’s approach has drawn mixed reactions domestically, with supporters backing his economic engagement strategy while businesses and opposition figures warn that deteriorating relations with the United States could carry economic risks.

A government source said Sanchez’s meeting with Xi Jinping on Tuesday would focus on geopolitical issues, reflecting Madrid’s view of China as a stabilizing global actor. However, trade representatives cautioned that such positioning could exacerbate existing strains, particularly as U.S. tariffs on European Union imports continue to weigh on Spanish exports.

“The United States is the leading foreign investor in Spain,” said Ramon Gascon Alonso of Spain’s Exporters’ and Investors’ Club, pointing to the importance of bilateral trade in key sectors of the economy.

Opposition figures have also criticized Sanchez’s stance, warning that public disagreements with Washington could undermine NATO cohesion and jeopardize the U.S. military presence in Spain.

China’s ambassador to Spain, Yao Jing, said stable bilateral relations had contributed to increased Chinese investment, describing Spain as pragmatic in its approach to economic cooperation and market access.

Official data showed Chinese firms invested 643 million euros in Spain in 2025, up from 149 million a year earlier, bringing total investment between 2010 and 2025 to 9.7 billion euros, largely concentrated in extractive industries and the energy sector.

During the three-day visit, Sanchez is scheduled to attend a formal banquet hosted by Xi, meet Premier Li Qiang and senior legislator Zhao Leji, and engage with business and academic leaders, including a visit to Xiaomi and a speech at Tsinghua University.

Spain is seeking to narrow a trade deficit with China that has more than doubled over four years to nearly $50 billion in 2025, with efforts focused on boosting agricultural and manufacturing exports.

Officials are also aiming to finalize a regionalization agreement to protect poultry exports affected by bird flu, following a similar arrangement that supported the pork industry during a previous African swine fever outbreak.