The US-led attack on Kharg Island, Iran's main oil-export terminal, has significantly impacted China's energy lifeline. Despite international sanctions, China had been the Ayatollah Khamenei regime's main buyer. It was paying below the market price for Iran's bootleg oil and insisted in paying in Chinese yuan, not dollars, ensuring that the money would flow back to China. However, the decapitation of Iran's leadership and destruction of its defense arsenal have united the entire region against it, leading to an enormous loss of face for China. This is part of a larger contest against China, with President Donald Trump's goal to transform the global order. As Trump strengthens alliances with Japan and other Asian countries, China is losing influence and potentially losing control over vital sea lanes.