Donald Trump has paused “Project Freedom”, the US operation aimed at restoring commercial shipping through the Strait of Hormuz. In a post on social media just days after the operation was first announced, Trump said he had made the decision to give US negotiators time to reach an agreement with Iran to end the war.

Iranian state media has framed the suspension as a US failure. Iran had warned that it would target vessels attempting to enter the waterway and subsequently launched missiles and drones at civilian ships and the United Arab Emirates. It is unclear where the conflict will go from here. But whatever happens next, the role of China will be crucial.

China has kept Iran’s economy afloat in the first two months of the war. Before the war, China accounted for up to 90% of Iran’s oil exports, importing over 1 million barrels each day. Iran continued to send large amounts of crude to China during the war’s early stages, with CNBC reporting that at least 11.7 million barrels were shipped between February 28 and March 10.

Payments for Iranian oil have been processed by institutions such as China’s Bank of Kunlun and the Cross-border Interbank Payment System. These are alternatives to the US-dominated Swift global payment system that enable oil trades to be settled in........

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