Trump heads to Beijing as US-China Iran tensions simmer beneath summit

China maintains strategic ambiguity, leveraging its Iranian oil imports and diplomatic channels while avoiding direct confrontation with the US. US attempts to coerce Chinese cooperation on Iran face resistance as Beijing prioritizes economic stability and avoids regional entanglement. Pakistan emerges as secondary broker. Power balance tilts toward compartmentalization rather than unified pressure on Iran.

Similar to Cold War-era US-Soviet summits where superpowers managed regional conflicts through selective engagement while preserving broader strategic relationships; echoes 1970s détente diplomacy.

Consumers face potential oil price volatility from Strait of Hormuz closure; pharmaceutical costs may be affected by fentanyl precursor cooperation; trade tensions could increase consumer goods prices if US-China negotiations stall.

Potential for new trade agreements or tariff adjustments; possible expansion of sanctions on Iran; increased regulatory focus on fentanyl precursor exports; diplomatic framework for compartmentalizing geopolitical disputes to preserve economic ties.