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strikeMar 28, 2026

The Iran war has given Trump his best hand against China — now he shouldn’t fold

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The Iran war has given Trump his best hand against China — now he shouldn’t fold President Donald Trump should say the quiet part out loud: China’s years of economic, technological and diplomatic support for Iran did not merely underwrite the regime’s malign activity. It accelerated it, financed it and made striking the Islamic Republic necessary to defend the interests of the United States and its partners around the world. President Trump should rally America’s allies in Europe and the Gulf Arab states behind this message leading up to trade talks with Xi Jinping next month in Beijing. He should make clear that, without China, the Iranian regime would have never been able to pay for waves of military strikes on Israel, target US bases in the region or shut down Gulf energy infrastructure. And he should go one step further. Trump should establish that every country negatively impacted by China’s role as the world’s largest sponsor of sanctions evasion is equally impacted by the Chinese Communist Party’s market-distorting trade practices. In this sense, the strikes on Iran have given Trump an opening to extract concessions from Beijing on a range of issues fundamental to the structure of the global economy. He should therefore leverage America’s economic advantages in energy, trade and finance to not only hold Beijing accountable for its support of the regime in Iran, but to cut at the heart of China’s economic model as well. Here’s how. First, Trump should further target Beijing’s appetite for sanctioned oil. For years, China has sustained its state-subsidized export machine partly on the back of deeply discounted sanctioned crude from Russia, Iran and Venezuela. These sanctioned barrels accounted for roughly a third of China’s crude imports in 2025, saving the country billions. Trump has already removed Venezuela as a source of illicit oil flows, but he can do more to target Russia and Iran. Even amid the strikes, Iranian ships are making their way to China. As for Russia, it supplies over 10% of China’s imported crude. Cutting off these flows would compete with other administration priorities, such as relieving supply shock pressures on oil consumers generated by the war in Iran, but they would effectively raise the cost base for China’s industrial sector and combat its destabilizing, nonmarket practices in a targeted fashion. All of this is compounded by China’s vulnerability to energy supply shocks. About half of China’s oil imports and nearly 30% of its liquefied natural gas (LNG) transit the Strait of Hormuz. Disruptions there hit China far harder than the United States, even with the buffer Beijing enjoys from years of building a strategic oil stockpile. That is why China’s foreign minister initially asked Iran to respect the “reasonable concerns” of its energy exporting neighbors in the Gulf while providing only muted criticism of the US and Israeli attacks. Beijing is now caught between two bad options: Intervene on Iran’s behalf and damage its relationships with the Gulf monarchies it depends on far more than it does on Tehran, or stand aside and watch Washington dismantle a partner in Tehran that Beijing spent years cultivating. The second area of vulnerability relates to trade. The Commerce Department has already imposed statutorily sound tariffs as high as 93% on Chinese goods sold below cost — like anode-grade graphite used in electric vehicle batteries — and could launch further investigations while pressing the World Trade Organization to hold Beijing accountable. Commerce has also concluded that Beijing’s state-directed tactics in the semiconductor and shipbuilding sectors constitute threats to US national security. Chip tariffs took effect in December 2025 and will escalate further in 2027. Meanwhile, suspended shipbuilding remedies are set to snap back this November. These deadlines — coupled with new trade investigations announced just weeks before the summit and dozens of trade agreements being negotiated to bolster partner country export controls and transshipment enforcement — should be seen for what they are: targeted, yet widespread and growing economic leverage aimed squarely at Beijing. Where China has tried to preempt US pressure, its strategy has backfired. Beijing implemented its strictest rare earth and permanent magnet export controls last year, including restrictions directly targeting foreign defense supply chains. It later suspended those controls, but the damage was done. China triggered the exact response it was trying to prevent — a wave of multilateral supply chain diversification, with billions flowing from partners in Australia, Canada, Japan, South Korea, the Gulf and elsewhere into strategic sectors of the US economy. The third vulnerability relates to U.S. dominance in financial flows. The Chinese Communist Party has long sought to distinguish between official government policy and the actions of private companies — but the line between the Chinese state and its commercial empire is far from an impenetrable legal shield. Trump should direct Treasury and State to prepare sanctions designation packages targeting the many Chinese financial institutions that process payments for sanctioned Iranian and Russian crude, the hundreds of Chinese firms operating in sanctioned sectors of those economies and the joint ventures engineered to create distance between sanctioned entities and Chinese state-owned enterprises. These targets should explicitly include China’s state-owned entities that purchase output from so-called “teapot refineries” processing sanctioned crude, as well as any Chinese financial conduits being used to pay the Islamic Revolutionary Guard Corps for access through Iran’s territorial waters in the strait. Washington should signal to Beijing which firms could be targeted, what China stands to lose from being cut off financially and how the US has more targets ready if a deal cannot be reached. But Trump shouldn’t pull the sanctions trigger yet. Beijing is contending with one of the worst housing crises in modern history, collapsing household wealth and persistent deflationary pressure. Efforts to address any of these challenges — let alone all three — will be slow and necessarily weaken CCP control over key state resources. And all of that was true before the war on Iran compounded Beijing’s vulnerabilities. China simply cannot afford financial isolation from the West. It must negotiate. When Trump arrives in Beijing next month, he should push Xi for concrete concessions that this moment has made uniquely possible: a verifiable commitment to halt purchases of sanctioned Iranian and Russian crude; market access reforms that rein in Beijing’s overproduction and state subsidies; strict export controls on dual-use technology and precursor chemical flows to Iran and other US adversaries; and enforceable mechanisms to shut down Beijing’s broader role as a sanctions evasion hub. Washington has real leverage, but that leverage has a shelf life. A protracted conflict risks negatively impacting the petrochemical sector that provides feedstock for plastics, semiconductors, pharmaceuticals and advanced manufacturing globally. The window to extract concessions from Beijing requires an urgent response from Washington — and it should not stand alone in making these demands of Beijing. The war should clarify something for European and Gulf partners that years of US pressure never achieved: China’s support for Iran is not an abstraction. It underwrote the regime that just destabilized their energy security, shipping lanes and regional order. That shared recognition should form the basis for a unified front — not just against Iran, but against the nonmarket practices Beijing has used for decades to hollow out allied industries and subsidize its export machine. It is time to hold Beijing accountable for keeping the Iranian regime afloat. The United States has a full arsenal of American economic statecraft to do just that. Elaine K. Dezenski is senior director and head of the Center on Economic and Financial Power (CEFP) at the Foundation for Defense of Democracies (FDD), where Max Meizlish is a research fellow. Follow them on X @ElaineDezenski and @maxmeizlish.

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  • Elaine K Dezenski; Max MeizlishBy Elaine K Dezenski; Max Meizlish

    The Iran war has given Trump his best hand against China — now he shouldn’t fold President Donald Trump should say the quiet part out loud: China’s years of economic, technological and diplomatic support for Iran did not merely underwrite the regime’s malign activity. It accelera

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DUBAI, United Arab Emirates (AP) — Iran attacked a tanker in the Strait of Hormuz early Tuesday, forcing its crew to abandon the ship, while the United States conducted yet another round of airstrikes targeting the Islamic Republic as they struggle over control of the key waterway.

The 10 consecutive nights of U.S. airstrikes haven’t compelled Tehran to loosen its grip on the strait, through which about a fifth of all crude oil and natural gas traded once passed in peacetime. Even as the U.S. and Iran inch closer to all-out war again, Iran’s interior minister traveled to Pakistan, a key mediator in the conflict, for talks.

However, it remains unclear just what new deal could be reached to end the fighting. The interim deal signed last month that was meant to end the fighting has crumbled. Shipping through the Strait of Hormuz has largely stalled. And as fighting intensifies, both sides have targeted civilian infrastructure relied on by millions of people.

“Iran and groups supportive of Iran may target other U.S. interests overseas or at locations associated with the United States and Americans throughout the world,” the U.S. State Department said in a new warning to Americans. The escalation has pushed oil prices higher in recent weeks.

Benchmark Brent crude traded Tuesday above $88 a barrel and regular gasoline in the U.S. climbed to an average of $4 a gallon, keeping pressure on Americans’ wallets ahead of midterm elections this fall. Meanwhile, the U.S. military identified two soldiers who were killed in Jordan in attacks that left a third person missing.

Separately, the military confirmed another death in Iraq on Saturday during the “controlled detonation” of a downed Iranian drone. President Donald Trump took to social media on Monday to warn that “Every time Iran kills an American Soldier they will pay for that killing many times over!

” Trump was planning to attend a ceremony on Tuesday evening at Dover Air Force Base, where at least one service member’s remains were due to arrive. US strikes come as ships attacked The U.S. military’s Central Command said Tuesday it targeted “Iranian military command centers, maritime capabilities, missile and drone launch sites and air defense systems.

” It released more footage of bombings that targeted sites in Iran. “American forces remain postured and prepared to hold Iran accountable for unwarranted aggression toward civilian mariners seeking to freely and openly transit the strait,” the command said.

Iranian state media reported that explosions were heard in Fars, Hormozgan, Ilam, Kerman and Sistan and Baluchistan provinces. However, traffic through the strait has slowed to a crawl during the latest violence. Lloyd's List Intelligence said only three ships transited the strait on Sunday.

The British military’s United Kingdom Maritime Trade Operations center said a tanker came under attack early Tuesday in the strait off Oman, forcing the crew to abandon the vessel. Iran’s paramilitary Revolutionary Guard claimed the attack, as well as two other attacks on ships Monday in the waterway.

The route around Oman has been the one the U.S. military has encouraged ships to travel to avoid Iran’s control. The UKMTO separately reported Tuesday that another previously unknown attack on a ship took place early the previous day. Tehran also hit U.

S.-allied countries throughout the Middle East. Jordan military's said Tuesday that Iran targeted it with five drones and three missiles, all of which were shot down. Bahrain sounded its missile alert sirens Tuesday afternoon as another Iranian barrage targeted the island kingdom, which is home to the U.

S. Navy's 5th Fleet. Nearly 100 US injuries since early July The Pentagon’s chief spokesperson said nearly 100 U.S. service members have been injured since the U.S. restarted strikes on July 7, and 96% of them have returned to duty.

“The vast majority of injuries experienced were minor concussions,” Sean Parnell posted Monday on X in response to a New York Times report that the Pentagon has withheld information about troop injuries from Iranian strikes. He denied that the Pentagon was hiding data about injuries.

However, the Defense Casualty Analysis System, the military’s clearinghouse for reporting deaths and injuries in conflict, has not been updated as of Monday night with the latest attacks. Yemen rebels threaten attacks on other Mideast waterway Yemen’s Houthi rebels announced a maritime embargo against Saudi Arabia on Monday.

The Houthis, who are backed by Iran, said they would block shipping between the Red Sea and the Gulf of Aden by targeting the Bab el-Mandeb, a maritime chokepoint like the Strait of Hormuz, in response to an attack on Sanaa International Airport last week that they blamed on Saudi Arabia.

With the Strait of Hormuz blocked, Saudi Arabia has been relying on a pipeline to the Red Sea to get millions of barrels of oil out to market. The Houthis earlier demonstrated their ability to disrupt shipping there when they targeted ships for months over the Israel-Hamas war in Gaza, with over 100 vessels attacked.

Saudi Arabia’s military said it would keep the waterway open. “All Houthi threats against transiting vessels will be dealt with swiftly and firmly, as such threats are a blatant violation of international law and fall under acts of maritime piracy,” said Maj.

Gen, Turki al-Malki, a Saudi military spokesman. A glimmer of hope for diplomacy Pakistan has intensified diplomatic efforts in recent days to resuscitate the interim deal. Iranian Interior Minister Eskandar Momeni arrived in Islamabad on Monday for two days of talks with Prime Minister Shehbaz Sharif and others.

On Sunday, U.S. Secretary of State Marco Rubio told reporters that the U.S. is still open to negotiating with Iran but that “it has to be real.” “If the door opens to diplomacy — if the guys that want to do something productive for Iran win and take control of that system, or take control of the negotiations — that’ll be a very positive development,” Rubio said.

“That’s not where we are tonight, unfortunately.” Iranian authorities on Sunday said at least 50 people have been killed and 517 wounded in the latest rounds of U.S. strikes. Since the war began on Feb. 28, 17 U.S. service members have been killed.

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US Secretary of War Pete Hegseth posted social media images showing damage to a maritime control tower at Iran’s Chabahar port following reported US military strikes, accompanied by the caption “Iran does not control the Strait of Hormuz.” India’s Ministry of External Affairs stated that the Shahid Beheshti terminal operated by India at the port sustained no damage.

The ministry reiterated its position that civilian infrastructure should not be targeted during conflicts.

Location: Iran
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U.S. strikes Iran and Houthis threaten Saudi Arabia shipping as mediators push 10-day ceasefire - The U.S. has carried out its tenth consecutive evening of attacks against Iran. - Iran attacked a tanker in the Strait of Hormuz early Tuesday, while Houthi militants in Yemen declared a maritime embargo against Saudi Arabia.

- Rystad Energy has warned about the risk of a significant rebound in oil prices. The U.S. completed a fresh round of strikes against Iran on Monday evening as Yemen's Iran-backed Houthis threatened to impose a naval blockade on Saudi Arabia, potentially opening a new front in the Middle East conflict.

The latest cycle of tit-for-tat strikes comes amid reports that regional mediators have presented Washington and Tehran with a proposal for a 10-day ceasefire, a pitch that could put last month's Memorandum of Understanding back on track. The U.S. Central Command said overnight that it had carried out another round of strikes on Iran at 9 p.

m. ET on Monday. "U.S. forces struck Iranian military command centers, maritime capabilities, missile and drone launch sites, and air defense systems to degrade Iran's ability to continue attacking commercial vessels flowing through the Strait of Hormuz," Centcom said in a statement.

It added that commercial vessel transits through the strategically vital waterway were continuing. Centcom forces, the statement said, had facilitated the transit of around 900 commercial vessels and 450 million barrels of crude oil through the strait since early May.

Iran, meanwhile, attacked a tanker in the Strait of Hormuz early Tuesday, forcing its crew to abandon the vessel as it seeks to tighten its control over the waterway, one that typically handles around 20% of the world's oil traffic. Houthi militants in Yemen on Monday declared a maritime embargo against Saudi Arabia effective immediately, a move that could substantially threaten Middle East oil supplies.

The Houthis have repeatedly threatened to close the Bab el-Mandeb Strait during the U.S.-Iran war. The strait is a choke point for commercial ship traffic that connects the Red Sea to the Gulf of Aden and global markets. The militants, in a statement carried by state news, accused the Saudis of laying an "aggressive siege" against them.

Tensions escalated last week after they claimed that Riyadh had bombed Sanaa International Airport. The Saudi-led coalition in Yemen said that it would respond to the Houthis naval blockade with force, reportedly describing such threats as "a blatant violation of international law.

" 10-day ceasefire 'won't be an easy task' Oil prices rose briefly on news of the Houthi statement but later pared gains as energy market participants closely monitored the prospect of a diplomatic breakthrough. International benchmark Brent crude futures with September delivery were last seen trading 0.

5% lower at $88.77 per barrel, having surpassed $90 in the previous session. U.S. West Texas Intermediate futures with August delivery, meanwhile, stood 0.4% lower at $82.88. Strategists at ING said there's some hope of de-escalation between the U.S.

and Iran given the reports that mediators are proposing a 10-day ceasefire. "This won't be an easy task," ING's Warren Patterson and Ewa Manthey said in a research note published Tuesday. "Large divisions remain between the US and Iran. And President Trump said the US would retaliate following the deaths of several American troops," they added.

In a post on Truth Social on Monday, President Donald Trump said: "Every time Iran kills an American Soldier they will pay for that killing many times over!" He added that this directive had been passed on to every leader in the military. Saudi Arabia oil risk Jorge León, senior vice president and head of geopolitical analysis at Rystad Energy, said the Houthis' threat puts approximately 2.

5 million barrels per day of Saudi Arabian oil at risk at a time when traffic through the Strait of Hormuz is at a standstill. "With the Gulf's primary maritime outlet largely closed, the market is increasingly dependent on Saudi Arabia's East-West pipeline and Red Sea terminals to maintain export flows," León said Monday in a research note.

Saudi Arabia's East-West pipeline network, or Petroline, is a roughly 750-mile system that transports crude across Saudi Arabia, connecting Abqaiq on the oil-rich kingdom's eastern Gulf coast to the port of Yanbu on the Red Sea. "Any disruption at Bab el-Mandeb would therefore threaten not only Saudi shipments but one of the few remaining routes capable of compensating for the severe reduction in Hormuz traffic," León said.

"If a ceasefire does not materialize and Hormuz remains largely closed while the Houthi threat to Red Sea shipping intensifies, the risk of a significant rebound in oil prices would be substantial," he added. — CNBC's Chloe Taylor and Spencer Kimball both contributed to this report.

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Yemen's Iran-aligned Houthis announced Monday they would impose a maritime blockade on Saudi Arabia, further throttling a global energy market already greatly restricted by Iran's closure of the Strait of Hormuz. This is why it matters and what it means for the Iran war and the global energy crisis.

It is not clear how the Houthis would carry out a maritime blockade of Saudi Arabia, its northern neighbor along the Red Sea coast, or whether it would include a return to attacks on shipping. Yemen sits on the Bab el-Mandeb strait – the southern gateway to the Red Sea – and closing that would open up a new front in the energy crisis and Iran's overarching conflict with the U.

S. With the Strait of Hormuz already disrupted, the Red Sea has become a critical alternative outlet for Gulf oil and other products. A serious disruption would mean both of the Middle East's major oil export routes are shut simultaneously. Iran's partial blockade of the Strait of Hormuz after Israel and the U.

S. attacked it on Feb. 28 disrupted most oil and other exports from the Gulf, raising prices and delivering a global energy shock. Saudi Arabia responded by diverting more than 70% of its normal daily crude exports to the Red Sea port of Yanbu. Ships from Yanbu bound for Europe go north through the Suez Canal.

Those heading to Asia go south through Bab el-Mandeb. Shipments from Yanbu averaged 4 million barrels per day in recent weeks according to data from Kpler and Signal Ocean, up from around 973,000 bpd a year earlier. Total petroleum volumes transiting Bab el-Mandeb amounted to 7.

4 million bpd in June, or about 7% of global oil output, according to Kpler data, up from 4.2 million bpd last year. That has provided a lifeline for the energy market, helping to keep down global oil prices. Saudi Arabia is considering an expansion of its crude oil pipeline to the Red Sea coast, Reuters reported last week.

When the Houthis launched attacks on Red Sea shipping in November 2023, Gulf oil exports were flowing freely. The Houthis have been in a civil war against the Saudi-backed, internationally recognized government for more than a decade and have attacked Gulf neighbors with missiles and drones.

However, a 2022 truce between the country's warring sides largely held until last week, when Yemen's internationally recognized government said it had struck Sanaa airport to stop an Iranian plane landing. The Houthis said Saudi Arabia was responsible and, in response, fired missiles at Abha airport in the kingdom's mountainous southwest.

A senior Houthi official, politburo member Mohammad al-Farah, then warned in an interview on Iran's Press TV website that if the situation kept escalating, Bab el-Mandeb would be closed. The U.S. says Iran has armed, funded and trained the Houthis with help from Hezbollah.

The Houthis deny being an Iranian proxy and say they develop their own weapons. It is not clear how far the group's stance on Bab el-Mandeb and the Red Sea stems from its own strategic priorities or is being made on Iran's behalf. After Israel's genocidal campaign in Gaza, the Houthis began firing at Israel and on shipping in the Red Sea, saying they were doing so in support of Palestinians.

The attacks severely disrupted global shipping, prompting Maersk, Hapag-Lloyd and other major companies to divert around Africa – a far longer, more expensive route. Red Sea traffic has not recovered since, with traffic through the Suez Canal down 52% in 2025 versus 2023 levels and at its lowest in at least 50 years, Suez Canal Authority data shows.

A U.S.-led mission to restore free navigation in the Red Sea involved repeated strikes on Houthi targets and a campaign that shot down hundreds of drones and missiles. But some Houthi attacks continued until last summer, only ending completely with the Gaza cease-fire in October.

Last month, the Houthis said they would ban ships linked to Israel from the Red Sea after Israel renewed military attacks on Iran. However, that threat was never acted on and shipping groups Maersk and Hapag-Lloyd are resuming some Red Sea routes that they had abandoned during the Houthi attacks last year, Maersk said this month.

While Hezbollah and the Iraqi groups joined the war early with rocket and drone fire after the first U.S. and Israeli strikes on Iran, the Houthis had been comparatively quiet. The group's leader Abdul Malik al-Houthi said on March 5: "Our fingers are on the trigger at any moment should developments warrant it.

" Iranian commanders have repeatedly warned that the Houthis could join the war. The Houthis launched a few missile and drone attacks on Israel in late March and early April. Revolutionary Guards Quds Force commander Esmaeil Qaani said on June 1 they could choke off the Red Sea.

That may now have changed with their announcement of the blockade on Monday against Saudi Arabia in retaliation for what they called the kingdom's siege of its ports and airports, including last week's strike.