China is reportedly prodding Iranian officials to negotiate with the US, while also quietly allowing its companies to give Iran commercial support that could help Iran’s military if it goes back into a full-blown war, NYT reports

This development indicates a potential shift in China's diplomatic strategy, as it encourages Iran to engage with the U.S. at a time of heightened tensions. The simultaneous support for Iranian companies could suggest that China is hedging its bets, preparing for escalations that might involve energy supply chains. Traders should watch for implications on oil prices and regional stability, given the delicate balance between diplomacy and military support.