Iran’s Jask, Pakistan’s Gwadar: China’s ports of power
Iran recently began exporting oil from its new terminal at Jask port on the Gulf of Oman, a move that allows it to bypass the Strait of Hormuz. This new route could benefit China, which may now rely on the Iranian port to secure steady oil supplies amid any potential closure of the strait due to the Iran-Israel conflict. In addition, Pakistan’s Gwadar Port serves as another strategic asset for China in sustaining its oil imports from the Middle East.
By Syed
Fazl-e-Haider
Columnist
The Strait of Hormuz, a critical transit point for global oil shipments, has gained attention amid the escalating Iran-Israel tensions. About 20% to 25% of the world’s oil supply passes through this narrow strait, which connects the Gulf of Oman and the Persian Gulf. Any disruption here would have widespread implications, particularly for China, the world’s largest oil importer.
Iran’s Jask Port, located just east of the Strait of Hormuz, hosts an oil terminal established three years ago as a safeguard for Iran’s oil exports. A full-blown conflict between Iran and Israel could force a closure of the Strait, a scenario that would significantly impact China, which sources 60% of its oil from the Middle East. In 2021, Tehran and Beijing formalized a comprehensive strategic partnership involving China’s $400 billion investment in Iran in exchange for long-term oil supply at a discounted price. A key element of this deal is China’s access to Jask Port, enabling it to receive oil imports from Iran and other Middle Eastern countries even if the Strait of Hormuz is blocked.
China also operates the port of Gwadar in Pakistan’s Balochistan Province. Located at the mouth of the Persian Gulf and near the Strait of Hormuz, Gwadar is a crucial component of the $62 billion China–Pakistan Economic Corridor (CPEC), a key element of China’s Belt and Road Initiative (BRI). The CPEC project aims to create an energy corridor connecting Gwadar with China’s Xinjiang region through highways, railways, and pipelines, thus offering an alternative to the risky Malacca Strait for Middle Eastern oil shipments. However, to achieve this goal, Gwadar Port needs further development. Currently, with a depth of 14.5 meters, it cannot accommodate large crude oil tankers, and plans to construct an oil refinery and an oil pipeline to Xinjiang’s Kashgar remain unfulfilled, largely due to security issues. Baloch insurgent groups have resisted Chinese presence, viewing Beijing as complicit in exploiting local resources.
Despite these challenges, China’s strategic presence at Gwadar allows it to monitor the region and respond swiftly to changes around the Strait of Hormuz. Furthermore, Iranian oil could be transported overland from Iran to Balochistan, then onward to China via the Karakoram Highway.
China has long anticipated the need for alternative oil supply routes, signing a strategic partnership with Iran in 2021 and assuming operational control of Gwadar in 2013. With Jask and Gwadar ports, Beijing is well-positioned to secure stable oil imports from the Middle East. These investments could also yield long-term strategic gains. In the future, China’s military presence at both ports could provide its navy with a strategic advantage in the Indian Ocean, enabling it to monitor US naval operations, including those of the US 5th Fleet based in Bahrain.
Ultimately, Jask and Gwadar, situated outside current conflict zones, have the potential to reshape Asia’s trade landscape. Beyond their geopolitical significance, these ports should be developed as alternative shipping routes that benefit the entire Asian region. With a focus on regional trade, both ports could foster commercial growth across Asia under an open trade agenda, rather than serving merely as assets in the geopolitical maneuvers of global powers.
The article first appeared on Nikkei Asia.