The Indian Ocean region is known for its abundant energy resources, and the MENA (Middle East and North Africa) region is closely connected to it through trade, geopolitics, and energy security. The Indian Ocean is a crucial maritime route, enabling the transportation of oil to global markets. This interconnectedness makes the area a focal point for geopolitical rivalry, as major countries like the United States and China compete for dominance through military bases, port investments, and strategic alliances; however, the growing naval ties between China and Iran have had a significant impact on the MENA region due to a 25-year defense cooperation agreement that includes a comprehensive strategic partnership. This partnership has led to numerous military drills, information sharing, and arms agreements. Neo-realism is adopted as the analytical framework because it explains why China remains cautious, balancing its strategic support for Iran with broader economic and diplomatic goals, including the avoidance of direct conflict with the United States and its allies in the MENA region. Although this relationship does not constitute an official defense pact, this alignment indicates a growing transactional partnership driven by shared geopolitical interests in the Indian Ocean, especially in the vicinity of the Gulf of Oman. Using qualitative research methods, the study aims to assess the implications for U.S. strategic interests, as well as the trajectory of Sino-Iranian naval relations and regional security dynamics. The findings suggest that China–Iran naval cooperation could affect maritime security, energy routes, and the balance of power among major nations, prompting a reevaluation of U.S. strategic posture in the region.