HONG KONG -- Soaring tensions between Iran and Israel are putting China in a tight spot, as excessive instability or all-out war could threaten interests it has cultivated in both countries.

Friday brought conflicting reports of a possible Israeli strike in the central Iranian city of Isfahan , with Israeli leaders having vowed to respond to Tehran's first direct attack last weekend. The Iranian barrage of drones and missiles had come in response to a suspected Israeli hit on its embassy in Syria that killed several military officials -- part of a long-running shadow war between the countries.