The Indian Ocean region is renowned for its abundant energy resources, and the MENA (Middle East and North Africa) region remains closely connected through trade, geopolitics, and energy security. The Indian Ocean serves as a vital maritime route for transporting oil worldwide. This interconnectedness makes the area a key focus for geopolitical rivalry, as major powers like the U.S. and China compete for influence through military bases, port investments, and strategic alliances; however, the increasing naval cooperation between China and Iran significantly impacts the MENA region due to a defense agreement that lasts 25 years and includes a comprehensive strategic partnership. This has resulted in numerous military exercises, intelligence sharing, and weapons deals. Neo-realism is a preferred approach in research because it explains why China remains cautious, balancing its strategic support for Iran with broader economic and diplomatic objectives. It involves avoiding direct conflict with the U.S. and its allies in the MENA region. Although not an official defense pact, this alignment signals a growing transactional partnership fueled by shared geopolitical interests in the Indian Ocean, especially near the Gulf of Oman. Using qualitative research methods, the study aims to evaluate the implications for U.S. strategic interests, as well as Sino-Iranian naval relations and regional perspectives. The findings suggest that China-Iran naval cooperation could influence maritime security, energy routes, and the regional balance of power among major nations, prompting a reassessment of U.S. strategy in the region.