The conflict, escalating since U.S.-Israeli attacks on Iran in February 2026, is putting GCC states in jeopardy. This conflict severely disrupts global trade and oil/gas supply chains, with the closure of the Strait of Hormuz being a major factor. Iran's retaliatory strikes targeting U.S. military bases in GCC nations are heightening regional security threats.
US President Trump warned China that it could face staggering tariffs, up to 50%, if it provides military support to Iran amid the Middle East conflict. This warning follows the collapse of US-Iran peace talks over Iran's nuclear program and control of the Strait of Hormuz. The situation signals a risk of the Middle East conflict expanding into a US-China economic confrontation, heightening geopolitical tensions alongside plans for a Strait of Hormuz blockade.