The $400 Billion Dollar Deal That Could Shape the Middle East

China and Iran signed a $400 billion dollar deal in Tehran, endangering U.S. influence in the region, giving China a stronger foothold in the Middle East, and further compromising the chance of Iran agreeing to the revival of any nuclear agreement.

 

On March 27th, China and Iran signed a deal that would provide Iran with $400 billion dollars of economic aid in exchange for cheaper oil. 

 

Under the Trump Presidency, America pulled out of the Iran Nuclear deal and re-imposed economic sanctions on the country in an attempt to hinder Iran’s military funding and missile programs. President Biden’s administration has been attempting to revive the deal and re-enter, with their main bargaining chip being that they would relieve Iran of the imposed sanctions that have been destroying the economy.

 

The new deal with China would alleviate much of the effects that the sanctions have imposed on Iran, reducing any incentive for Iran to agree to a new deal with America. The proposed $400 billion would undermine much of America’s efforts to control Iran and its massive influence on the Middle East, and furthermore, give China much more power in the Middle East. 

 

The most prominent powers in the Middle East are Iran, Israel, and Saudi Arabia. Saudi Arabia and Israel, who are America’s allies, have been in a constant proxy war with Iran, and have been struggling to combat Iran’s growing influence in countries such as Yemen, Iraq, Lebanon, and Syria. 

 

China daily, which is owned by the communist party has stated that the deal is part of a plan to achieve “security and stability in the Middle East”. This promise sounds very similar to America’s “Peace in the Middle East” campaign that has given the U.S. so much control and influence in the Middle East to this day. China is aware of America’s growing disapproval of their staying in the Middle East and their attempt to replace the U.S. as the most predominant foreign power in the region.

 

With China inserting itself into one of the world’s most unstable regions, there could be much more conflict and bloodshed in the near future. The constant proxy wars between much less powerful countries such as Iran and Saudi Arabia have already destroyed much of the Middle East, but if China embeds itself into the already war-torn region, there may be even more conflict between the U.S. and China. On the other hand, the U.S. may pull out of much of the Middle East in hopes of avoiding any large scale conflict.

 

Besides China undermining the U.S. by offering Iran economic aid in the face of the sanctions, it also paints itself as the hero of the story and the U.S. as the villian attempting to strangle a country into submission. If China becomes a friend to the Middle East, the opportunities for power and control will become exigent.

 

(Photo Courtesy of BBC News March 30th, 2021)