Beijing pushes diplomacy as Trump’s Iran squeeze faces pushback

The week saw the 60‑day window for US‑Iran peace talks expire with no deal, as Trump threatened further economic pressure and Tehran pressed for sanctions relief. China rejected sanctions as a solution and urged dialogue, while the US designated Hezbollah as an Iranian proxy and imposed new penalties. Iran warned of stronger responses if hostilities resume, and regional moves continued, including the UAE halting trade with Iran. Meanwhile, U.S. carrier movements shuffled in the region and inflation crept higher in Iran, complicating any quick resolution and underscoring the need for broader international coordination beyond Washington’s unilateral pressure.