China’s Strategic Gains from the US-Israeli War on Iran

In February 2026 the United States and Israel began a joint air campaign against Iran that lasted nearly four months. On 20 June 2026 the parties signed a memorandum of understanding, starting a 60-day period to negotiate a final settlement while leaving broader nuclear and regional disputes unresolved.

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Beijing condemned the strikes, denounced the killing of Iranian officials, and kept diplomatic channels open. Foreign Minister Wang Yi held repeated talks with Iranian officials, supported Pakistan’s mediation, and was thanked by Iranian Foreign Minister Abbas Araghchi for a “constructive role” in advancing negotiations.

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China imports 40 percent of its crude oil and one-third of its LNG from the Middle East, making the Strait of Hormuz essential. Beijing used strategic petroleum reserves of roughly 1.2 billion barrels and diversified supply routes, avoiding disruption. The interim deal opened a $300 billion fund, with contributions from firms in the Gulf and Asia.

Asia TimesNewsweekHow Trump’s Iran war boosted Beijing

The war exposed fissures between Washington and its allies, giving China comfort to cast the U.S. as unreliable. Henry Wang said the attacks “dismantled 80 years of the world order.” Chinese officials contrasted the U.S.–Israeli campaign with Beijing’s “responsible, non-military” stance, reinforcing a narrative of a sovereign power.

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China’s foreign ministry said it “stands ready” to restore peace and tranquility. Iranian Foreign Minister Abbas Araghchi thanked China. President Donald Trump praised China’s neutrality at a G7 press conference.

CNN

Europe expressed frustration with the war’s economic fallout and questioned the U.S.–Israeli strategy. U.S. allies noted uneven support, while critics highlighted China’s continued purchase of Iranian oil despite U.S. sanctions, suggesting a double-standard in its neutral stance.

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Chinese officials declined to confirm a direct role in brokering the memorandum, leaving analysts uncertain whether Beijing’s influence was limited to signaling or involved back-channel mediation. The impact of China’s “tireless” peace proposal on the final terms remains unverified.

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• “The U.S. attacks on Iran with Israel really set an unprecedentedly bad example and dismantled 80 years of the world order,” — Henry Wang, Center for China and Globalization

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• “The dawn of peace has emerged. The key to the next step is for all parties to truly implement their commitments and eliminate interference from all sides,” — Lin Jian, Chinese Foreign Ministry spokesperson

CNN

• “I want to thank China, President Xi … he stayed neutral, totally neutral, and I appreciate it,” — Donald Trump, G7 press conference

CNN

• “We look just as ruthless but less predictable or strategically competent than China.” — Kori Schake, American Enterprise Institute

Newsweek

The 60-day negotiation window will shape the reconstruction fund, the pace of Iranian oil exports, and Chinese investment in Iran’s energy, logistics and manufacturing sectors. Observers expect Beijing to use its energy diplomacy to deepen Gulf ties, while the United States reassesses its strategic posture in the Strait of Hormuz.

Asia Times