Middle East Turmoil Could Lead to Significant Losses for China

The ongoing conflict between Israel and Iran, exacerbated by U.S. involvement, may intensify the situation. An analysis by The New York Times on the 20th pointed out that since nearly half of China's oil imports pass through the Strait of Hormuz, a loss of control over the Middle East conflict could result in substantial losses for the Chinese Communist Party.
Following U.S. attacks on Iran, Beijing has not released any official response. The report notes that China has been purchasing oil from Iran at low prices and using a 'shadow fleet' of oil tankers to circumvent international sanctions.
Half of the oil transported to China must pass through the Strait of Hormuz along Iran's southern coast, and if the conflict between the two nations escalates, it could impact China's energy stability, increasing prices at a time when Beijing is attempting to reverse a stagnating economy, potentially intensifying domestic unrest.
Additionally, Iran provides a crucial foothold for China in Middle Eastern affairs, and the worsening conflict could undermine Beijing's strategic role in the region. For years, the CCP has sought to leverage its relationship with Tehran to counter U.S. influence in the Middle East.
According to Cooper, a senior researcher at the American Enterprise Institute, while there are strategic interests involved, it is unlikely that China would militarily protect Iran in the event of U.S. intervention, and they would likely only offer low-profile material support, verbal backing, and some humanitarian aid.