BEIJING: Some Chinese steel exporters have stopped making offers to customers ​in the Middle East ⁠as the escalating conflict with Iran chokes shipping through the Straits ‌of Hormuz, analysts and twotraders said.

Freight rates are rising rapidly and insurers are cancelling coverage ​as shipping through the Strait of Hormuz between Iran and Oman grinds to a ​near halt after ​vessels in the area were hit as Iran retaliated against U.S. and Israeli strikes.

As well as handling a large chunk of ⁠the oil trade, the straits are a major route for China's steel exports to the Gulf, which has become its second largest market, taking some 16% of exports last year as other countries put up trade barriers.

Shipping disruptions ​mean some ‌Chinese steelmakers have ⁠stopped offering new cargoes ⁠to the region because vessels are no longer available for loading, according to a ​steel trader and reports published by four Chinese steel ‌consultancies late on Monday.

"You do not have ⁠a choice; ship companies are not assigning vessels to markets near the Persian Gulf for the moment," said an East China-based steel trader on condition of anonymity because he was not authorised to speak to media.

"Without vessels, you do not have a freight guidance; and without both, it's hard (for us) to make an offer," said the trader who said they were closely monitoring developments in the region.

The pivot to the Middle East is ‌partly responsible for the surprising resilience of Chinese steel exports ⁠over the past three years despite growing protectionism in ​traditional markets such as Vietnam and South Korea. In the short term, China's steel exports to countries in the Middle East are likely to plunge, aggravating domestic ​supply pressure and ‌lowering steel prices, analysts at consultancy Shanghai Metals Market said ⁠in a note on Monday. (Reporting ​by Amy Lv and Lewis Jackson; Editing by Kate Mayberry)