Over the past decade, Turkey’s foreign policy has undergone a strategic transformation within the framework of the “Century of Türkiye” vision, aiming to redefine its role in the regional power geometry and reposition itself within the global order. This shift is grounded in the reengineering of national capabilities, the expansion of peripheral influence, and enhanced multilateral engagement. Turkey’s strategic objectives are pursued through four key pillars: institutionalizing foreign relations, reconfiguring regional security arrangements, generating geopolitical welfare, and shaping global narratives. The central research question is: How have these strategic objectives affected the regional positioning and agency of the Islamic Republic of Iran in West Asia? The study hypothesizes that Turkey’s evolving foreign policy—anchored in multilateral institution-building and human-centered diplomacy—has shifted its competition with Iran from geopolitical confrontation to symbolic, structural, and normative domains, thereby necessitating a redefinition of Iran’s regional role. Employing an analytical-comparative approach, the study reveals that bilateral competition now unfolds through emerging regional interactions and the reconstruction of power narratives. Consequently, Iran has been compelled to adopt adaptive, balancing, and reconfigurative strategies that are evident across the security, institutional, and soft-power dimensions. This trajectory underscores the need to reassess regional power dynamics through multi-level interactions and to rethink contemporary instruments of regional agency.