Iran secretly acquired a Chinese spy satellite called TEE-01B that gave the Islamic Revolutionary Guard Corps a powerful new capability to target US military bases across the Middle East during recent conflicts, according to an FT investigation. Leaked military documents show the satellite was launched from China in late 2024 and later tasked to monitor key US sites.

Time-stamped coordinates, satellite imagery and orbital analysis reveal Iranian commanders used the Chinese-built satellite to gather intelligence before and after drone and missile strikes on US locations in March. This development is particularly sensitive given China's position as the largest trading partner and oil buyer for Gulf countries, raising questions about Beijing's role in regional conflicts.

The revelation comes as US President Donald Trump suggested the Iran war was "very close to over" and that Tehran wanted to "make a deal very badly." Asian stocks rose and oil prices fell on the news, reflecting market optimism about potential de-escalation in the Middle East.