On June 25th, the second phase of CNOOC’s “Deep Sea No.1” gas field in the South China Sea was fully put into operation, marking the completion of China’s largest offshore gas field.

This June was no ordinary month. The conflict between Iran and Israel, as well as the involvement of the United States, have hidden dangers in the waves of the Strait of Hormuz.

Iran has threatened to block this vital passage for 20% of the world’s oil (about 20.9 million barrels per day). As early as in a secret exercise in 2019, Iran successfully tested the “smart mine” system, which could precisely lock onto specific vessels and avoid its own oil tankers. This technical detail has never been made public, but it makes the threat of the strait blockade more credible.

If the blockade is implemented, it will push up the oil price to above $100 per barrel. About 90% of Iran’s oil exports flow to China.