Middle East Escalation Rattles Global Markets, Tests China's Diplomacy

Middle East Tensions Intensify, Sending Shockwaves Through Global Markets

As US and Israeli military strikes against Iran persist, conflict in the Middle East has escalated significantly. This development has not only triggered a surge in international oil prices but also sparked a global sell-off in stock markets, with Wall Street taking a heavy hit. Analysts note that geopolitical risks are reshaping market sentiment, driving investors toward safe-haven assets.

Simultaneously, numerous Filipino overseas workers in Iran and surrounding regions find themselves in a precarious situation. The Philippine government has yet to initiate a large-scale repatriation plan, forcing many workers to weigh personal safety against the livelihoods of their families back home.

The regional conflict also threatens key shipping lanes. Increased risks to navigation through the Strait of Hormuz have begun to impact China's imports of critical industrial materials like methanol, potentially causing ripple effects throughout China's manufacturing supply chains.

## China Adheres to Balanced Diplomacy, Urges Restraint Faced with the rapidly changing regional landscape, China's foreign policy is undergoing a new test. Analysis suggests that despite shocks such as the killing of Iran's supreme leader, Beijing is unlikely to abandon its long-standing strategy of 'balanced diplomacy' in the region. Chinese Foreign Minister Wang Yi, in talks with France's Jean-Noel Barrot, emphasized that the international community must work together to prevent further escalation, stating that the world must not return to the 'law of the jungle.' Both sides agreed to cooperate in helping de-escalate the conflict between the US, Israel, and Iran. Notably, France stated it was neither informed of nor involved in the recent military operations against Iran.

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Middle East Tensions Intensify, Sending Shockwaves Through Global Markets