While the United States still has military options available against Iran, these are unlikely to isolate Tehran from its allies. Despite a new round of sanctions, the regime remains defiant. The key issue for the current administration is that it lacks the willingness to confront China and Russia over their assistance to the regime, and is instead urging Beijing’s cooperation as it looks ahead to Donald Trump and Xi Jinping’s meeting on September 24.
Under the current stalemate, Washington’s allies in Asia are disproportionately affected, at a time where they are being asked to take on a greater share of the regional deterrence burden.
Both China and Russia continue to materially aid Iran and are alleged to have provided intelligence assistance that helped it strike American bases across the region. China has provided drone components, navigation modules, chemical precursors for missile propellant, shoulder-fired systems, and continues its purchases of discounted Iranian crude. Russia has supplied upgraded drones built off Iran’s own design from its Alabuga factory in Tatarstan, along with satellite imagery and damage assessments enabling strikes on American assets.
The entities involved have been sanctioned, yet they have adapted. Washington has designated Chinese companies, sanctioned tankers and warned banks against dealing with the refineries in Shandong province that import and process Iranian crude. Beijing responded by shifting to overland routes through Pakistan and Central Asia, and by issuing a blocking order that exposes any company obeying the American sanctions to Chinese penalties for doing so.
Both Washington and Beijing have pulled their punches, proving they value their trading relationship more than they do the outcome of the Iran war. After the October 2025 summit, an American export control rule covering the subsidiaries of blacklisted firms was suspended, and China lifted its export controls on critical minerals. In March, oil sanctions on both Moscow and Tehran were eased in response to soaring energy prices. The reciprocal tariff suspension runs until November 10.
Beijing, for its part, has legally defended its refineries only far enough to pass the risk to third parties. It has not retaliated directly, and it has kept state-owned companies away from the trade so that it need not protect them. This provides a cheap arrangement, which it can abandon at will.
Washington has much to lose and little to gain from further commitment in the Iran war, and Iran’s leverage rests on having correctly assessed how much each side is willing to spend on a resolution. The United States therefore cannot compel Iran by intensifying strikes or enforcing tougher sanctions. It has to reorient Iran’s backers away from it.
The current administration’s unwillingness to do this has overwhelmingly affected its allies in the Indo-Pacific.
Asia’s reliance on oil imports transiting the Strait of Hormuz has placed countries like Japan, South Korea, and the Philippines in a situation where their interests are a secondary concern for the United States in the Iran war – and remember, the entire conflict already ranks behind its trading relationship with China on the administration’s priority list. If Washington expects industrialized democracies to carry a growing share of the Pacific deterrence burden, then it must recognize the difficult position they now have.
The lack of willingness to impose costs on authoritarian adversaries for aligning their interests has been visible in the northern Pacific, with China and Russia conducting joint drills that North Korea has sought to join. Unopposed, this kind of alignment creates the condition for normalized cooperation between authoritarian states. Allies in the Pacific will remain reliant on the United States, but they now understand that American commitments must be priced in terms of commercial convenience.
For countries in Southeast Asia, the war is predominantly an economic issue that has increased shipping costs and disrupted price stability for energy importers seeking to sustain export-reliant economies. While these states also value security against Beijing’s coercive policies, the incentive to engage with Washington is weak as long as carrier task groups are being rotated out of the region, and the stability of energy markets is in doubt. Pressuring them to align or increase their share of the deterrence burden while not providing much in return is unlikely to yield positive results.
In March, the Atlantic Council recommended that Trump confront Xi directly for his country’s support of Iran. This was a solid suggestion, yet without diplomatic pressure being applied consistently, there is no signal that Washington needs this war over or that it will not tolerate outside support for Tehran. Confrontation has had an effect in the past; it forced Beijing to move to less efficient overland supply routes specifically to avoid naval interception and secondary sanctions. If the U.S. takes no further action, Beijing will conclude that it has correctly calibrated its support for Iran: not enough to provoke a reaction and not so little that Tehran feels isolated.
Furthermore, as long as there appears to be an incentive not to impose costs on China or Russia, allies in Asia will have to prepare for a long-haul period of high energy prices with no clear solution in sight, while their adversaries face few consequences for aligning their interests. Washington’s current campaign against Asian economies it accuses of transshipping Chinese goods to bypass tariffs highlights how much more it seems to value its commercial relationship with Beijing. Punishing allies for routing Chinese goods while leaving China untouched looks a lot like shooting the couriers. Breaking away from this pattern requires a concerted effort aimed at pressuring Tehran’s backers, and that begins by signaling that the November 10 renewal for tariff suspension on China is not guaranteed.