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Analysts: Israel-Iran Conflict Exposes China’s “Limited Leverage”

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Analysts: Israel-Iran Conflict Exposes China's "Limited Leverage"

China called for a ceasefire. But despite its recent history of mediation in the region, its role was limited this time.

Through the 12 days of the recent Israel-Iran conflict, China moved quickly to position itself as a potential mediator and voice of reason amid a spiralling regional crisis.

The day after Israel’s unprovoked attack on Iran on June 13, Beijing reached out to both sides to express its desire for a mediated solution even as the country’s top diplomat, Foreign Minister Wang Yi, condemned Israel’s actions as a violation of international law.

Chinese President Xi Jinping soon followed with calls for de-escalation, while at the United Nations Security Council, China joined Russia and Pakistan in calling for an “immediate and unconditional ceasefire”.

When Iran threatened to blockade the strategically important Strait of Hormuz, through which 20 percent of the world’s oil passes, Beijing was also quick to speak out.

The Ministry of Foreign Affairs instead called for the “international community to step up efforts to de-escalate conflicts and prevent regional turmoil from having a greater impact on global economic development”.

Beijing’s stance throughout the conflict remained true to its longstanding noninterference approach to foreign hostilities. But experts say it did little to help shore up its ambition of becoming an influential player in the Middle East, and instead exposed the limitations of its clout in the region.

Why China was worried
Unlike some countries, and the United States in particular, China traditionally approaches foreign policy “through a lens of strategic pragmatism rather than ideological solidarity”, said Evangeline Cheng, a research associate at the National University of Singapore’s Middle East Institute.

This approach means China will always focus on protecting its economic interests, of which it has many in the Middle East, Cheng told Al Jazeera.

China has investments in Israel’s burgeoning tech sector and its Belt and Road infrastructure project spans Iran, Saudi Arabia, Qatar, Oman, Kuwait, Iraq, Egypt and the United Arab Emirates.

Critically, China relies on the Middle East for more than half of its crude oil imports, and it’s the top consumer of Iranian oil. A protracted war would have disrupted its oil supplies, as would an Iranian blockade of the strategically important Strait of Hormuz – something threatened by Tehran’s parliament during the conflict.

“War and security instability not only undermines Chinese investment and trade and business… but also the oil price and gas energy security in general,” said Alam Saleh, a senior Lecturer in Iranian Studies at the Australian National University.

“Therefore, China seeks stability, and it disagrees and opposes any kind of military solution for any type of conflict and confrontations, no matter with whom,” he said.

John Gong, a professor of economics at the University of International Business and Economics in Beijing, told Al Jazeera that China’s top concern through the conflict was to avoid “skyrocketing oil prices” that would threaten its energy security.

Flexing diplomatic muscle, protecting economic might
Aware of China’s friendly relations with Iran and Beijing’s economic fears, US Secretary of State Marco Rubio called on Beijing to keep Tehran from closing the Strait of Hormuz as ceasefire negotiations stumbled forward this week.

It was a brief moment of acknowledgement of Beijing’s influence, but experts say China’s overall diplomatic influence remains limited.

“China’s offer to mediate highlights its desire to be seen as a responsible global player, but its actual leverage remains limited,” Cheng said. “Without military capabilities or deep political influence in the region, and with Israel wary of Beijing’s ties to Iran, China’s role is necessarily constrained.”

To be sure, Beijing has demonstrated its ability to broker major diplomatic deals in the region. In 2023, it mediated the normalisation of relations between Iran and Saudi Arabia. While seen as a huge diplomatic win for China, experts say Beijing owed much of its success to fellow mediators, Oman and Iraq. China also mediated an agreement between Palestinian factions, including Hamas and Fatah, in July 2024, under which they committed to working together on Gaza’s governance after the end of Israel’s ongoing war on the enclave.

But William Yang, a senior analyst for Northeast Asia at the Brussels-based International Crisis Group, said the odds were stacked against China from the beginning of the latest conflict due to Israel’s wariness towards its relationship with Iran.

In 2021, China and Iran signed a 25-year “strategic partnership”, and Iran is an active participant in the Belt and Road project. Iran has also joined the Beijing-led Shanghai Cooperation Organisation and this year took part in China’s “Maritime Security Belt” naval exercises.

Iran’s “resolute opposition to American hegemony” also aligns well with China’s diplomatic interests more broadly, compared with Israel’s close ties to the US, Yang said.

China’s dilemma
It’s a scenario that could be repeated in the future, he said.

“This case also reinforces the dilemma that China faces: while it wants to be viewed as a great power that is capable of mediating in major global conflicts, its close relationship with specific parties in some of the ongoing conflicts diminishes Beijing’s ability to play such a role,” Yang said.

For now, Beijing will continue to rely on the US as a security guarantor in the region, he added.

“It’s clear that China will continue to focus on deepening economic engagement with countries in the Middle East while taking advantage of the US presence in the region, which remains the primary security guarantor for regional countries,” Yang said.

“On the other hand, the US involvement in the conflict, including changing the course of the war by bombing Iranian nuclear sites, creates the condition for China to take the moral high ground in the diplomatic sphere and present itself as the more restrained, calm and responsible major power,” he said.

Aljazeera.com

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Elon Musk’s Net Worth Surges To $1.3 Trillion As SpaceX Stock Rally Continues

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Elon Musk’s net worth surged to $1.3 trillion after SpaceX shares soared following its record-breaking IPO, adding an estimated $165 billion to his fortune in a single day.

Elon Musk’s wealth jumped by about $165 billion in one day as SpaceX stock surged after its historic stock market debut. SpaceX briefly crossed a $3 trillion valuation, making it one of the world’s most valuable companies and further cementing Musk’s position as the richest person on earth. The company also holds 18,712 bitcoin, while some analysts warn that SpaceX’s rapid rise in value may be difficult to sustain over the long term.

Elon Musk has added an astonishing $165 billion to his personal fortune in just one day, pushing his estimated net worth to around $1.3 trillion after SpaceX shares continued their explosive run on the stock market.

The sharp jump came as SpaceX stock gained nearly 20% during its second full trading session following its historic Nasdaq debut. The rally briefly pushed the company’s market valuation above $3 trillion, cementing its position among the world’s most valuable publicly traded companies.

SpaceX entered the public market under the ticker symbol SPCX after pricing its initial public offering (IPO) at $135 per share. The company raised approximately $75 billion, making it the largest IPO ever recorded. Investor demand was reportedly overwhelming, with orders exceeding $350 billion, nearly four times the amount of stock available.

By Monday’s close, SpaceX shares had climbed as high as $229.40, giving the aerospace and satellite internet giant a market capitalization of about $2.52 trillion. At one point during trading, the company’s value crossed the $3 trillion mark.

The rally has had a massive impact on Musk’s wealth because he remains the company’s largest shareholder. According to estimates, his one-day gain exceeded the entire net worth of Microsoft co-founder Bill Gates.

Investor and entrepreneur Anthony Pompliano highlighted the scale of the surge in a post on X, writing:

“SpaceX hit a $3 trillion market cap today. This means Elon Musk made more money in the last 24 hours than Warren Buffett made in his entire lifetime.”

At an estimated $1.3 trillion, Musk’s fortune now stands far ahead of every other billionaire on the planet. His wealth is worth roughly two-thirds of the combined fortunes of the next nine richest individuals.

Much of that wealth is now tied directly to SpaceX, which has rapidly become one of the most valuable companies in the United States following its public listing. The company’s businesses span reusable rocket launches, satellite communications through Starlink, government contracts, and emerging artificial intelligence infrastructure projects.

Institutional investors have also rushed into the stock. ARK Invest, led by Cathie Wood, purchased nearly 3.3 million SpaceX shares across multiple exchange-traded funds shortly after trading began. Wood has previously expressed confidence in the company’s long-term prospects, citing Starlink’s global broadband network and SpaceX’s leadership in reusable rocket technology.

SpaceX’s Bitcoin holdings draw attention

Beyond its space and telecommunications businesses, SpaceX has also attracted attention for its cryptocurrency holdings.

The company reportedly owns 18,712 bitcoin, making it one of the largest corporate holders of the digital asset. When combined with Tesla’s reported holdings of 11,509 BTC, companies linked to Musk control more than 30,000 bitcoin.

Earlier this year, crypto asset manager Grayscale suggested that SpaceX could become the most valuable publicly traded company with direct bitcoin exposure once it completed its IPO.

The development has fueled debate among investors about whether capital is shifting away from cryptocurrencies and into high-growth technology stocks. Some market participants believe blockbuster public listings such as SpaceX, OpenAI and Anthropic are attracting money that might otherwise have flowed into digital assets.

Despite the excitement, not everyone is convinced the rally can continue at its current pace.

Some analysts argue that SpaceX’s valuation may have moved ahead of its underlying financial performance. Critics have pointed to the company’s heavy reliance on Starlink revenue and warned that post-IPO enthusiasm could fade once insider lockup periods expire and early investors begin taking profits.

Still, supporters argue that SpaceX’s dominance in commercial space launches, satellite internet services and future space exploration initiatives gives it a unique position in global markets.

For now, investors appear focused on growth, with the company’s stock continuing to attract strong demand as Wall Street bets on SpaceX becoming one of the defining technology companies of the coming decade.

 

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JUST IN: 12 Dead as Aircraft Crashes Near Airport

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At least 12 people have been killed in a plane crash in Missouri in the midwestern United States, according to authorities.

The crash on Sunday was near Butler Memorial Airport in Bates County, south of the state’s largest city, Kansas City.

“Troopers are on scene assisting the Butler Police Department & Bates County Sheriff’s Office of a Fatal Plane Crash near the Butler Memorial Airport,” the Missouri State Highway Patrol posted on X.

“At this time reports indicate all occupants (12 total) have perished,” it said.

Missouri Highway Patrol Sergeant Justin Ewing said the plane was taking people up to skydive.

Emergency responders received a call that a plane was down and engulfed in fire around 11:30 am local time (16:30 GMT) on Sunday, he said.

They were able to extinguish the fire shortly after the crash, he said, describing the scene as “brutal.”

“It landed in a field adjacent to the airport, but I think they’re shutting down the roadway just as a precaution,” Ewing said.

The identities of those killed were not immediately released.

Ewing said the National Transportation Safety Board (NTSB) was on scene investigating the crash.

The cause was not immediately available.

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Relief as Marketers Release Cheaper Petrol Prices Nationwide

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The cost of importing petrol into Nigeria dropped sharply following the recent decline in global crude oil prices, creating fresh competition for local refiners, including the $20 billion Dangote Refinery.

New data released by the Major Energy Marketers Association of Nigeria (MEMAN) showed that the landing cost of imported Premium Motor Spirit (PMS), also known as petrol, had fallen to N1,117 per litre as of June 4, 2026.

The figure was significantly lower than Dangote Refinery’s gantry price of N1,250 per litre, leaving a difference of N133 per litre.

Meanwhile, Nigeria’s fuel market is facing renewed uncertainty after the Dangote Refinery reportedly reduced petrol production, prompting fuel marketers to increase imports of cheaper products amid concerns over supply stability.

The development comes at a sensitive period for global energy markets, with rising crude oil prices and geopolitical tensions already putting pressure on fuel costs worldwide.

According to industry monitor IIR Energy, the Dangote Refinery has reduced operating rates at its key gasoline-producing unit, the Residual Fluid Catalytic Cracking Unit (RFCCU), by about 34%.

The reduction is linked to technical issues affecting the unit, which plays a major role in converting heavy crude residues into valuable products such as petrol, diesel and cooking gas.

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