An era has reached its end. Washington now faces a stark choice: It must either pay the true diplomatic and political price of leadership or prepare to hand over the keys to a region it can neither afford nor effectively manage.

U.S. strikes on Iran that killed Supreme Leader Ali Khamenei redirected American military resources and attention from the Indo-Pacific to the Middle East. This shift allows China to strengthen its strategic position in Asia while the United States becomes absorbed in a secondary conflict.

The U.S.-Israel strike on Iran lacks a clear legal basis or credible justification and represents a high-risk gamble by the Trump administration. Despite early military success, the operation faces uncertain prospects, including limited chances of regime change and the risk of prolonged conflict.

The death of Iran’s Supreme Leader Ayatollah Ali Khamenei in U.S.-Israeli strikes has created leadership uncertainty in Tehran, weakened Iran’s regional network of allies, and accelerated shifts in Middle Eastern power dynamics. For China, the conflict threatens energy supplies and Belt and Road investments while potentially expanding Beijing’s diplomatic role if it maintains neutrality and engagement with all sides.

The fragile ceasefire in Gaza reflects accelerating recalibration in the Middle East, as U.S. military maneuvers are giving way to economic development promoted by the Arab states, China and the Global South.

As evidenced by complicity in the Gaza genocide, the U.S.-Israel military symbiosis in the Middle East is increasingly shunned by the international community. What the region needs is aggressive economic development.

China’s approach to conflict mediation is characterized by what scholars call “quasi-mediation diplomacy,” in which Beijing emphasizes rhetoric and symbolic gestures while avoiding costly commitments. Recent cases show that China prefers strategic ambiguity and bureaucratic caution over assuming a high-profile mediator role.

China declined an opportunity to join Iran in its June 2025 confrontation with the United States and Israel. Though Beijing enjoys good relations with the Iranian regime, competing alignments and other considerations convinced PRC policymakers to adopt a low profile during the twelve-day war.

The unity of the Gulf states, their diversified partnerships and their degree of assertiveness — along with China’s deepened relationships in the region — may constrain U.S. dominance. Even so, China must devise policies to navigate the unexpected strategic challenges it might encounter.

China’s efforts to mediate between various Palestinian groups is a first step toward bridging the divide between Palestine and Israel. The U.S. must also take ownership of its responsibility and similarly employ its significant influence over Israel.