• The Strait of Malacca between Indonesia and Malaysia is the world’s busiest sea lane, with over 100,000 ships passing annually, carrying 25-40% of global maritime trade.
  • The crisis in the Strait of Hormuz has highlighted the vulnerability of the Strait of Malacca, which is even more critical for global trade, especially for China, which imports nearly 80% of its oil through it.
  • China is the largest buyer of Iranian oil, and after the US blockade of Iranian ports, tensions between China and the US are rising; the strait issue will be high on the agenda of the upcoming Trump-Xi summit.
  • Experts warn that a blockade of the strait would lead to a collapse of global supply chains, increased energy costs, and an economic crisis.
  • China has been trying for decades to diversify its supply routes to reduce dependence on the strait, but remains most reliant on this sea route.
  • Indonesia and the US are strengthening their defense partnership, including the possibility of US military overflights, which would allow the US to monitor the strait.

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