DEVELOPING: Iran's strategy UNRAVELS as China pushes for oil flow

The Chinese foreign minister calling for. effective measures to open the Strait of. Hormuz during a meeting with his Iranian. counterpart in China earlier this. morning. But Tehran has rejected new. talks with US until its conditions over. the Strait and other issues are met. Joining me now to discuss this is former. deputy national security advisor. Victoria Coates. Victoria, always good. to have you on. You know, Iran basically. said they're not going to talk if. there's no end to the war. Two, if we. don't release billions of those frozen. assets. And three, if there's no.

interference in their nuclear program. And those stipulations are not good and. I I just cannot foresee the US agreeing. to any of this. >> Well, Ashley, I agree. I don't think any. of that is going to happen and it's very. interesting to have foreign minister. Araghchi in Beijing today meeting with. his counterpart Wang Yi. And I think. what China really wants is the starting. back up that free flow of cheap oil out. of Iran. So, they may be putting some. pressure on Iran. Bear in mind, they've. done very little to help Iran during. this conflict. They haven't sort of. ridden to the rescue as many people.

expected. So, we may see more. developments in coming days. >> So, do you think I mean this sounds. crazy to even say, do you think China. can talk any sense into Iran? >> Well, China really holds all the cards. here in their in their relationship with. Iran. They basically have trapped Iran. in this kind of barter system. So, they. do take the oil that Iran got out during. the the brief sort of the memorandum of. understanding in July. They got about 90. billion barrels of oil out on the on the.

water. China's happy to buy those, but. they just do it in barter. They don't. actually give Iran hard currency. So, Iran is kind of tethered to China at. this point. That's their only source of. income, but it isn't solving their. economic problems. >> You know, Iran's Supreme National. Security Council said this is in part. damage control won't stop what's coming. That's a that's a pretty hard threat. How do you think the US should respond. to that? >> Well, I mean, we have to respond with. vigilance. We have to watch them very, very closely. But if they had any.

options like that, Ashley, I have to. expect they would have played played. those cards. >> That's my question. Do you think they. would have done it already? >> And and we we we've heard over and over. again since March are these threats. You. know, it's coming. We're going to do. this. We're going to do that. Okay. Uh you know, but we we've been watching. them very closely. We've neutralized. them militarily. And now we have. Operation Economic Outcast really. starting to take effect. >> Yeah, it seems like um just an optic. situation before the midterms. You know, if I'm being quite honest. Do you see. this war ending or coming closer to an.

end before the midterms? >> I don't know that it will happen before. the midterms, but I think where Iran. really overplayed its hand is they. assumed President Trump was going to be. forced into making a deal before the. midterms. That's not been the case. And. what's going to happen with the midterms. is probably, quite frankly, break baked. in at this point. Not much is going to. change between now and then. And then. what they have after the midterms is 2. more years of President Trump. And I. think that's what they didn't bargain. for. So, they may get to the point.

in coming weeks, if not months, where. they have to make a deal. They don't. have a choice. >> And you know, that that brings me to. another question cuz when you think. about it, I mean, I don't know that. there's going to be a definitive end to. the war. We're going to see, you know, a. lot of changes because we're we're still. going to have the repercussions of the. oil situation and the economy because I. feel like that's going to trickle in. even to the US, you know, over the next. months to a year. Am I right on that or. am I? >> No, I mean, we we live in a global. energy environment. We are going to be. ramping up to about 14 million barrels a.

day in Q1 of 2027. We were at 8 million. barrels for perspective when President. Trump came in in 2017. So, the United. States is now a massive exporter. And we. are also much more sort of insulated. from energy shocks here at home than. some of our partners are. Saudi Arabia. announced yesterday, for example, they're halting all oil exports to. Europe. And this is a huge problem for. Europe, which has deliberately not uh. developed their own assets, has tried to.

say that peak oil has happened, they're. not going to import as much oil. Well, winter is coming, and now they need that. oil, and now Saudi is saying that they. can't provide it. >> Okay, Victoria Coates, as al- always, thank you so much. I appreciate it. Be sure to like and subscribe for all. the Fox News latest on YouTube and catch. full shows streaming now on Fox 1.