Strategic Estimates

China has mediated a Palestinian reconciliation dialogue in Beijing, and has succeeded in bridging the rift between Saudi Arabia and Iran. These steps indicate a change in China's approach to the Middle East, as it has become an active player in the region by expanding its policies to include political and strategic considerations, in addition to its energy interests. Its "non-interventionist" policy has attracted many countries in the region, which see their growing relations with Beijing as a means of diversification. However, China's increasing involvement may pose a threat to US interests in the region. As Washington has increasingly focused on the Indo-Pacific region, China has emerged as an active player in the Middle East, reshaping regional security dynamics, signing strategic partnerships and memoranda of understanding for its economic activities with most Middle Eastern countries, and strengthening its ties with various regional organizations over the past two decades. Recent Chinese diplomatic initiatives demonstrate Beijing’s deep investment in further developing relations with Middle Eastern countries, with Beijing hosting the Arab-Chinese Summit and the Gulf-China Summit, demonstrating its commitment to strengthening strategic partnerships among the region’s countries and promoting economic development beyond its traditional energy interests. China’s growing engagement in the Middle East is seen as a significant factor shaping the region’s geopolitical landscape and has significant implications for global politics. This raises the question: how China’s methods diverge from those of the United States (U.S.) in the region?

The world has been on edge since July 31,2024, awaiting Iran’s response to the assassination of Ismail Haniyeh, head of the Hamas political bureau, in Tehran by an Israeli attack. Haniyeh was targeted while attending the inauguration ceremony of Iranian President Masoud Pezekshian, marking a direct challenge to Iranian sovereignty and its role as a regional leader of resistance movements. This event underscores the broader confrontation between Iran, which opposes what it perceives as the United States and Israeli dominance in the region. Given the assassination's symbolic and strategic significance, many see Iran’s retaliation as inevitable, particularly amid escalations between Israel and Iran. Notably, this incident is part of a broader series of high-profile killings targeting figures within the so-called resistance axis. Just hours before the explosion in Tehran, Israel launched a missile strike in Beirut's southern suburbs, killing Fouad Shukr, a senior Hezbollah military official, while also claiming—without confirmation—the assassination of Mohammed Deif, a leading Hamas military commander.   While consensus exists regarding the certainty of an Iranian response, there is sharp debate within political and military circles over the nature of this retaliation. The targeted nature of the Israeli strikes suggests that a direct and immediate Iranian response may be needed to restore its deterrent credibility. However, Iran’s extensive network of regional proxies presents an alternative, allowing Tehran to retaliate indirectly while avoiding the military and economic costs of direct confrontation. This calculation has become more critical following the U.S.’s declaration that it would militarily defend Israel against any Iranian attack, reaffirming its earlier stance on Iranian missile strikes against Israel in April.   Predicting the nature of Iran’s response can be facilitated by examining the pattern of its previous reactions to similar attacks, particularly given Iran’s long history of confrontations following the 1979 revolution and its enduring hostility toward the U.S. Among these conflicts, the one most analogous to the current situation is the so-called Tanker War, which took place between Iran and Iraq from 1984 to 1988. Iran successfully drew the U.S. into a large-scale military engagement in the Arabian Gulf during this period. This scenario holds significant parallels to today’s tensions, as will be detailed later.   This paper, therefore, aims to analyse the similarities and differences between Iran’s current posture and its stance during the Tanker War from multiple perspectives—military, political, and economic—both internally externally. By comparing the dynamics at play, including the role of the U.S. in both scenarios, this analysis seeks to clarify what can be expected from Iran in light of these combined variables.