Published by Global Banking & Finance Review®
Posted on February 24, 2026
6 min readLast updated: April 2, 2026
Add as preferred source on GoogleIran is nearing a deal to buy China’s CM‑302 supersonic anti‑ship missiles. The move could challenge U.S. naval forces and heighten risks for Gulf shipping and energy markets as regional tensions rise.
By John Irish, Parisa Hafezi and Gavin Finch
LONDON, Feb 24 (Reuters) - Iran is close to a deal with China to purchase anti‑ship cruise missiles, according to six people with knowledge of the negotiations, just as the United States deploys a vast naval force near the Iranian coast ahead of possible strikes on the Islamic Republic.
The deal for the Chinese‑made CM‑302 missiles is near completion, though no delivery date has been agreed, the people said. The supersonic missiles have a range of about 290 kilometres and are designed to evade shipborne defences by flying low and fast. Their deployment would significantly enhance Iran’s strike capabilities and pose a threat to U.S. naval forces in the region, two weapons experts said.
Negotiations with China to buy the missile weapons systems, which began at least two years ago, accelerated sharply after the 12‑day war between Israel and Iran in June, according to the six people with knowledge of the talks, including three officials who were briefed by the Iranian government as well as three security officials. As talks entered their final stages last summer, senior Iranian military and government officials travelled to China, including Massoud Oraei, Iran’s deputy defence minister, according to two of the security officials. Oraei’s visit has not been previously reported.
“It’s a complete gamechanger if Iran has supersonic capability to attack ships in the area,” said Danny Citrinowicz, a former Israeli intelligence officer and now senior Iran researcher at Israel’s Institute for National Security Studies think tank. “These missiles are very difficult to intercept.”
Reuters could not determine how many missiles were involved in the potential deal, how much Iran had agreed to pay, or whether China would go through with the agreement now given heightened tensions in the region.
“Iran has military and security agreements with its allies, and now is an appropriate time to make use of these agreements,” an Iranian foreign ministry official told Reuters.
In a comment sent after publication, China's Ministry of Foreign Affairs said it was not aware of the talks about a potential missile sale that Reuters had reported. China's defence ministry did not respond to a request for comment.
The White House did not directly address the negotiations between Iran and China over the missile system when asked by Reuters. U.S. President Donald Trump has been clear that “either we will make a deal or we will have to do something very tough like last time,” a White House official said, referring to the current standoff with Iran.
The missiles would be among the most advanced military hardware to be transferred to Iran by China and defy a United Nations weapons embargo that was first imposed in 2006. The sanctions were suspended in 2015 as part of a nuclear deal with the U.S. and allies, and then reimposed last September.
US FORCES GATHERING NEAR IRAN
The potential sale would underscore deepening military ties between China and Iran at a moment of heightened regional tension, complicating U.S. efforts to contain Iran’s missile programme and curb its nuclear activities. It would also signal China’s growing willingness to assert itself in a region long dominated by U.S. military might.
China, Iran and Russia hold annual joint naval exercises, and last year the U.S. Treasury Department sanctioned several Chinese entities for supplying chemical precursors to Iran's Islamic Revolutionary Guard Corps for use in its ballistic missile program. China rejected those allegations, saying it was unaware of the cases cited in the sanctions and that it strictly enforces export controls on dual-use products.
While hosting Iranian President Masoud Pezeshkian for a military parade in Beijing in September, Chinese President Xi Jinping told the Iranian leader that "China supports Iran in safeguarding sovereignty, territorial integrity and national dignity.”
China joined Russia and Iran in a joint letter on October 18 to say they believed the decision to reimpose sanctions was flawed.
“Iran has become a battlefield between the U.S.” on one side and Russia and China on the other, said one of the officials who was briefed by Iran’s government on the missile negotiations.
The deal comes as the U.S. assembles an armada within striking distance of Iran, including the aircraft carrier USS Abraham Lincoln and its strike group. The USS Gerald R. Ford and its escorts are also heading to the region. The two ships together can carry more than 5,000 personnel and 150 aircraft.
“China does not want to see a pro-Western regime in Iran,” said Citrinowicz, the Israeli specialist on Iran. “That would be a threat to their interests. They are hoping that this regime will stay.”
Trump said on February 19 he was giving Iran 10 days to reach an agreement over its nuclear programme or face military action. The U.S. is preparing for the possibility of sustained, weeks-long operations against Iran if Trump orders an attack, Reuters reported on February 13.
A DEPLETED ARSENAL
The CM-302 purchase would be a significant improvement in an Iranian arsenal depleted by last year’s war, said Pieter Wezeman, a senior researcher at the Stockholm International Peace Research Institute.
China’s state-owned China Aerospace Science and Industry Corporation (CASIC) markets the CM-302 as the world’s best anti-ship missile, capable of sinking an aircraft carrier or destroyer. The weapons system can be mounted on ships, aircraft or mobile ground vehicles. It can also take out targets on land.
CASIC did not respond to a request for comment.
Iran is also in discussions to acquire Chinese surface‑to‑air missile systems, so-called MANPADS, anti‑ballistic weapons, and anti-satellite weapons, the six people said.
China was a major arms supplier to Iran in the 1980s, but large‑scale weapons transfers dwindled by the late 1990s under international pressure. In recent years, U.S. officials have accused Chinese companies of providing missile-related materials to Iran but have not publicly accused it of supplying complete missile systems.
(Reporting by Gavin Finch in London, John Irish in Paris, and Parisa Hafezi in Dubai. Additional reporting by Gram Slattery in Washington and David Brunnstrom at the United Nations. Edited by Lori Hinnant.)
Iran is close to a deal with China to acquire CM‑302 supersonic anti‑ship missiles, a move that could reshape naval balance and heighten risks to Gulf shipping and energy flows.
The CM‑302’s supersonic speed and sea‑skimming profile make interception difficult, potentially threatening U.S. and allied vessels and raising market risks tied to the Strait of Hormuz.
Sources indicate the agreement is near completion, but no delivery date or quantities are confirmed, leaving timing uncertain amid diplomatic and sanctions pressures.
Escalating military tensions near key sea lanes typically lift risk premiums for oil and shipping, increase volatility in energy markets, and support safe‑haven currency flows.
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