Xi Jinping in Panic Mode Qatar Cuts Supply China Faces Oil Crisis

The crisis triggered by the war in the Middle East has escalated rapidly. A Chinese sailor live-streamed scenes from the conflict, showing hundreds of ships stranded as the Strait of Hormuz was effectively blocked. Beijing's strategy in the Middle East has collapsed. Today, we take a deeper look into this issue. On an early day of the month, a Chinese sailor was stranded on an oil tanker at Jebel Ali port, the largest port in the Middle East. Using his phone, he live-streamed a shocking scene. We are currently anchored at Jebel Ali port. The ship has finished unloading, but because the Strait of Hormuz is blocked, we can only follow the ship owner's instructions and wait here for further orders. Can you see the area over there? That is a US military base, known as one of the safest logistics hubs in the Gulf region. What just happened? An oil tanker was hit by a missile. That ship probably tried to force its way through the Strait of Hormuz. The ship owner is likely American or Israeli, but the crew is certainly not. This is a disaster. Truly bad luck. But to be fair, our situation is not much better. The US base nearby has also just been attacked. 90 seconds ago, two projectiles landed. The explosions were extremely loud. It was attacked yesterday, and after firefighters had just put out the flames, now two more strikes have hit. I really don't dare stand here anymore. It's too close, only a few hundred meters away. The missile just now was probably intercepted, then fell straight into the sea, sending water splashing high into the air. It's truly terrifying. Oh my God, it exploded. It really exploded. I can't take this anymore. That same afternoon, but then another Chinese sailor trapped inside the Strait of Hormuz also posted a video describing their situation. As of now, more than 150 oil tankers and LNG carriers have dropped anchor around the Strait of Hormuz, waiting for further plans. In the anchorage areas of the Persian Gulf and offshore the Gulf of Oman, many tankers remain stationary, awaiting instructions. According to posts from other sailors, captains received notices from their companies, ordering ships to speed up and leave the Gulf and withdraw from the Strait of Hormuz. Not only there, but in the Red Sea, many long-distance vessels that originally planned to pass through the Suez Canal have rerouted around the Cape of Good Hope. Many Chinese sailors shared videos stating that the situation in the Strait of Hormuz is extremely tense. GPS signals are severely disrupted, and missile trajectories are flying overhead. The Strait is effectively blocked. Hundreds of ships are stranded, explosions are constant, shells fall into ports, and distress signals are heard over radio from surrounding vessels. No ship dares to move. An even more urgent issue is that food supplies on board are running low. Some sailors have already exceeded their scheduled time at sea by half a month and may have to continue for another month. Livestream videos from Chinese sailors on ships and social media platforms reveal the harsh reality in the Strait of Hormuz. After Iran announced comprehensive control over the Strait, a maritime humanitarian crisis is rapidly forming. More than 200 oil tankers and cargo ships are trapped inside and outside the Gulf. On sailors are not only facing the threat of war, but also the risk of running out of food and fresh water, along with the despair of not knowing when they can return home. However, while these frontline sailors risk their lives to broadcast the brutality of war, a surreal narrative unfolds on Chinese social media. Many nationalist bloggers and little pink groups believe Iran only targets American ships, and that Chinese vessels can safely pass simply by flying the Chinese flag. They claim Iran, described as China's iron brother, has opened a special passage for Chinese ships, and that the red flag with five stars is the ultimate protection. Yet some netizens remain skeptical, questioning whether Chinese ships are truly unaffected. Others respond that such claims are unrealistic and likely come from overly optimistic streamers. We did the simplest way to verify is whether any ship dares to pass through. According to AIS tracking data and international maritime intelligence statistics, from the first to the fourth of the month, the number of ships passing through the Strait of Hormuz dropped sharply from nearly 100 per day to almost zero, with some periods seeing no traffic at all. Major Chinese shipping companies such as Costco Shipping, Costco Shipping Energy, and China Merchants Energy Shipping announced the suspension of routes in the Persian Gulf and halted all new bookings. Even Chinese-funded VLCC tankers, such as the Xinlongjiang, which were previously believed to have special exemptions, have completely stopped operating on this route. Meanwhile, war risk insurance premiums in the maritime insurance market have surged more than fivefold. And nearly all international insurers have refused to cover voyages through the region. Without insurance, almost no ship is willing to risk sailing. Some early exceptions, such as LPG and LNG carriers flying Chinese flags but linked to US, Japanese, or South Korean ownership, briefly attempted passage. But as conditions worsened, these exceptions quickly disappeared. Even Russian gas carriers have reportedly suffered explosions elsewhere, underscoring a harsh reality. Under great power confrontation, no vessel from any nation can remain truly safe. The idea of special exemption is nothing more than wishful thinking. Another consequence of the blockade is the near paralysis of maritime navigation systems. But Chinese state media had previously praised the Beidou navigation satellite system as a global standard capable of replacing GPS in emergencies. However, real footage from stranded sailors directly contradicts this narrative. One sailor stated, GPOS is down, Beidou was working before, but now it doesn't work either. This device supports multiple navigation systems. I turned them all on, but there is still no signal. There is no positioning here at all. We hope the signal recovers soon and that the war ends soon. We all want to go home. These first-hand videos expose the exaggeration in official narratives. While some media accounts continue promoting Beidou's anti-jamming capabilities and advanced technology, the reality on the ground tells a different story. If the danger to sailors and navigation failure merely embarrassed Beijing, the blockade of the Strait of Hormuz and the disruption of oil and gas production strike directly at the core of China's economy. China is the world's largest importer of crude oil, with more than half of its energy supply dependent on the Middle East. In 2025, over 80% of crude oil passing through the Strait of Hormuz was destined for Asia, with China importing approximately 4.6 million barrels per day. Iran, one of the few countries willing to accept yuan payments under sanctions, sold up to 95% of its crude oil to China. Now, this flow has effectively stopped. At the same time, disruptions have extended to LNG supplies. Qatar, one of China's largest LNG suppliers, accounting for about 30% of its imports, it has suspended production at key facilities due to drone attacks. Long-term contracts signed by Chinese state energy giants are now effectively halted. In the short term, China has no clear alternative sources to fill the gap. To maintain industrial production and electricity supply, China may be forced into the global spot market at any cost, driving up gas prices in Asia and Europe. According to Bloomberg Economics, if the blockade persists, oil prices could rise to $108 per barrel, increasing inflation and sharply raising manufacturing costs in China. Shipping costs have also surged. Transporting crude oil from the Gulf of Mexico to China now exceeds $14.5 per barrel, nearly one-fifth of the total oil price. Rerouting via the Cape of Good Hope adds 10 to 15 days to journeys, while freight rates have doubled. ATO industry insiders say the impact exceeds even the disruption caused by the Suez Canal blockage in 2021. The disruption has also hit China's energy storage export sector. The Middle East was the second-largest export market for Chinese energy storage equipment in 2025, with major orders from countries like Saudi Arabia and the United Arab Emirates. Companies such as CATL and BYD now face delivery delays of two to three months, leading to inventory buildup, cash flow pressure, and rising debt risks. Faced with energy disruption and trade paralysis, Beijing has responded in a hurried and contradictory manner. Officially, the Chinese Foreign Ministry spokesperson, Mao Ning, has called for restraint and safety in maritime routes. Behind the scenes, however, reports suggest Beijing is pressuring Iran through various channels to ease the blockade. But he's requesting that Tehran avoid attacking oil and energy tankers and refrain from striking key export hubs. This contrast reveals a deeper reality. A country that once projected strength in international affairs now finds itself dependent on the very partner it supported. The crisis has exposed both economic vulnerability and diplomatic weakness. Meanwhile, the United States appears to be executing its strategy with relative confidence. Backed by its shale energy revolution, the U.S. is now the world's largest oil and gas producer and a leading LNG exporter. President Donald Trump announced that the U.S. International Development Finance Corporation would provide political risk insurance for commercial vessels, while the U.S. Navy stands ready to escort tankers if necessary. This combination of insurance and military protection aims to restore market confidence. Some analysts predict the Strait of Hormuz could reopen within weeks. In contrast, Xi Jinping is reportedly facing growing pressure. Analysts argue that this crisis represents a strategic setback for Beijing, the collapse of its geopolitical narrative, the exposure of military realities, and the economic blowback from its own partnerships. Ultimately, the war has done more than damage oil tankers. It has shattered illusions. When sailors trapped at sea cry out that they only want to go home, when billion-dollar contracts vanish overnight, and when a nation realizes its energy lifeline lies in others' hands, the concept of strategic stability begins to unravel. This crisis has stripped away the image of a rising global power or revealing a stark truth. A country that cannot secure its own vital energy supply is building its ambitions on fragile ground.