Iran has placed a substantial order for ballistic missile propellant from China, according to people familiar with the matter, in a move that could significantly bolster Tehran’s missile capabilities as it navigates sensitive nuclear negotiations with the United States.

The Wall Street Journal reported that the shipments involve thousands of tons of ammonium perchlorate, a key ingredient used in the production of solid-fuel ballistic missiles. Sources say the material is expected to begin arriving in Iran over the coming months and could be used to manufacture as many as 800 missiles.

Some of the propellant is likely destined not only for Iran’s military arsenal but also for allied armed groups in the region, including the Houthi rebels in Yemen, according to one individual familiar with the transaction.

The procurement was reportedly arranged by an Iranian entity through a Hong Kong-based intermediary, reflecting a pattern of indirect transactions used to circumvent international scrutiny. U.S. officials told the Journal that they assess the volume of ammonium perchlorate to be sufficient for the production of hundreds of solid-fuel missiles.

A spokesperson for the U.S. State Department told the Journal that China’s ongoing support for Iran’s missile ambitions remains a persistent concern for the Trump administration.

While Iranian officials have not publicly confirmed the shipment, Western intelligence agencies are closely monitoring the transfers and their potential implications for regional stability. The prospect of Iran redistributing missile components to proxy forces raises alarms among U.S. allies, particularly given the Houthis' ongoing involvement in regional conflicts and attacks on maritime traffic in the Red Sea.