China's economy grew at its slowest pace since late 2022 in the second quarter of 2026 as the Iran war and oil prices weighed on growth

China's gross domestic product grew 4.3 percent year on year in the second quarter of 2026, its slowest quarterly pace since late 2022 and below the government's official target range of 4.5 to 5 percent. Data released in the week ending 15 July showed China's economy expanded 4.7 percent overall in the first half of 2026.

According to reports, the Iran-US war and the surge in global oil prices, together with weak domestic demand, were cited as the main drivers of the slowdown. China, the largest buyer of Iranian oil, has cut its crude purchases in recent months in response to higher prices, a shift that bears directly on Iran's oil revenue.

The figures matter for Iran's market through the channels of global oil demand and trade with Beijing.