China Seeks to Mediate Iran-US Conflict Amid Economic Strain

China is actively seeking to mediate in the Iran-US conflict, driven by its strategic interests in securing oil supplies and protecting its ambitious Belt and Road Initiative. The ongoing hostilities and the blockade of the Strait of Hormuz have not only disrupted global trade but also severely impacted Iran's economy and China's bilateral trade with the Islamic Republic.

Despite official Iranian assertions of economic resilience, with claims of significant oil revenues over the past four months, the reality on the ground suggests a dire situation. The Strait of Hormuz, a critical chokepoint for global oil transport, has seen reduced traffic, affecting Iranian oil tankers. Furthermore, trade between China and Iran, excluding the energy sector, has plummeted from $3.3 billion in the March-June 2025 period to $830 million in the same period this year.

Recognizing the threat to its energy security and the Belt and Road Initiative, China is intensifying its diplomatic efforts. While the US may be hesitant to accept China as a direct mediator, Beijing is leveraging its relationship with Pakistan, a country that has previously played a mediating role in the conflict. Recent talks between Pakistani Foreign Minister Ishaq Dar and Chinese delegates, as well as meetings with Iranian officials in Pakistan, indicate an indirect channel for China to influence potential peace talks.

China's Foreign Minister Wang Yi has called for dialogue between Washington and Tehran. This diplomatic push coincides with increased phone diplomacy among other Persian Gulf nations, highlighting a broader regional concern over the escalating conflict and its potential consequences for stability and energy security.

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