United States Launches Economic D-Day To Isolate Iran, Threatens China Over Oil Trade

US President Donald Trump’s administration has said it aims to sever “every” economic lifeline sustaining Iran in what officials have warned will be the toughest sanctions campaign ever seen. The threat, if followed through, would mean putting China, Iran’s biggest trade partner, squarely in the crosshairs of US sanctions. Recommended Stories list of 4 items- list 1 of 4Will Donald Trump’s new sanctions against Iran work? - list 2 of 4Raphinha and Lopez score braces as Barcelona trounce Elche 5-0 - list 3 of 4Tokayev allies head for landslide victory in Kazakhstan elections - list 4 of 4Large forest fire burns close to residential areas in Ankara That would be a risky proposition for Washington due to the likelihood of severe blowback from Beijing – so much so that some analysts doubt that the Trump administration’s measures, set to be announced on Monday, will match its rhetoric in scope or severity. While the Trump administration has yet to provide details about what it has dubbed “economic D-Day”, US officials have made it clear that Iran’s trade partners are in their sights. In an op-ed in the Financial Times on Sunday, US Treasury Secretary Scott Bessent warned that countries fearful of breaking ties with Iran should not “discount the cost of testing Washington”. “The president has created the conditions to leverage every agency, every authority and action many assumed we would never summon,” said Bessent, who is scheduled to unveil the sanctions in a news conference at 17:00 GMT. Brett Erickson, a sanctions expert and managing principal of Obsidian Risk Advisors, said the Trump administration’s willingness to target China will be an indication of its resolve to mount a sustained economic offensive against Tehran. “That is not a relationship you degrade lightly. If the United States decides to really bring China into the ring, it will be a serious indication that the United States plans to wage this economic war for a prolonged period of time,” Erickson told Al Jazeera. “If they do not, it will be a tacit admission from the Trump administration that they do not believe economic hardship can seriously bring about a change in the Iranian position,” Erickson said. Any US pressure campaign that excludes China would be necessarily limited in scope given the outsized importance of Beijing and Tehran’s economic ties. China reported $9.96bn in two-way trade with Iran in 2025, a figure that does not include some $31.2bn in Iranian oil shipments, according to the US-China Economic and Security Review Commission. China’s purchases of Iranian oil have been a particularly crucial lifeline for Tehran, accounting for about 90 percent of its oil sales, according to the US Treasury Department. Until now, the Trump administration’s Iran sanctions regime has targeted only a handful of relatively minor China-based entities. In April, the Trump administration sanctioned Hengli Petrochemical (Dalian) Refinery, one of China’s largest independent refineries, commonly known as “teapots”, over its alleged purchases of Iranian oil. The Trump administration also imposed sanctions on four firms in Hong Kong in May, followed by measures in August targeting six China and Hong Kong-based shipping lines. Washington has so far left Chinese financial institutions, widely viewed as a key node in Iran’s oil trade, untouched. “Cutting off Chinese economic ties will be key to the success of any attempt to increase pressure on Iran. However, the United States won’t do it,” Jennifer Kavanagh, a senior fellow at Defense Priorities, a Washington-based foreign policy think tank, told Al Jazeera. “If it does, China will retaliate and has the leverage to impose costs on the US,” Kavanagh said. China has vigorously opposed US sanctions against Iran, arguing that economic pressure will not resolve the nearly six-month-long war. In a statement on Sunday, China’s Ministry of Foreign Affairs said that Beijing remained “committed to promoting peace talks” and willing to “continue making efforts for the early restoration of peace and tranquility in the region”. Iran, for its part, has threatened to retaliate against countries that support the US measures. Mohsen Rezaei, the secretary of Iran’s Supreme National Security Council, warned on Saturday that any country that participated in sanctions would be considered an “enemy” and that “not a drop” of oil would leave the Gulf if Iran’s neighbours joined the US campaign. Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China, said Beijing would inevitably take countermeasures in response to any US sanctions and their intensity would depend on the “severity of US actions”. “China maintains its desire to avoid conflict, but its bottom line cannot be crossed,” Wang told Al Jazeera. For Trump, invoking Beijing’s ire would risk not only economic retaliation, but also unravelling efforts to stabilise US-China relations only weeks before the US president is due to host Chinese leader Xi Jinping at the White House. Trump’s scheduled summit with Xi on September 24 would be their second face-to-face meeting aimed at lowering the temperature in US-China relations since Washington launched its war on Iran in late February, following Trump’s visit to Beijing in May. Zichen Wang, deputy secretary-general of the Center for China and Globalization (CCG) think tank in Beijing, said neither Beijing nor Washington were likely to want Iran to define the upcoming summit. “Unless the US measures become very broad or directly target major Chinese interests, both sides are likely to try to keep this dispute from overwhelming the wider agenda,” Wang told Al Jazeera. “That said, Chinese restraint should not be read as an absence of response,” Wang said. “Beijing has often avoided immediate rhetorical escalation, but when unilateral US actions have materially affected Chinese companies or other Chinese interests, it has shown a growing willingness to answer with practical countermeasures.” While the Trump administration could potentially make it more challenging and expensive for China to continue its economic support of Iran, it is unlikely to be able to stop Beijing outright if it is determined to maintain ties, said Erickson of Obsidian Risk Advisors. “US sanctions can absolutely force companies to de-risk in order to avoid exposure, but there will always be an entity willing to fill this role,” Erickson said, adding that Xi is unlikely to “merely stand by while Trump flexes the powers of American economic statecraft without flexing Beijing’s own in return”. Though US officials have stated their intention to “collapse” Iran’s government with ramped-up sanctions, Erickson expressed doubt that the Trump administration will be able to achieve its war goals through economic pressure alone. “Unless the Trump administration is willing to burn serious bridges and employ all remaining levers of economic warfare simultaneously, there is no reasonable assertion that can be made that it will be able to produce the victory that kinetic warfare could not,” he said.

China reaffirmed its determination to defend its own interests “with all due vigor” in response to the United States’ plans to “strangle” Iran and its trading partners. China said it would defend its interests after Washington unveiled plans to choke Iran, Beijing’s economic partner, and imposed sanctions on several entities, including some in China, while expanding the scope of threats with secondary sanctions. Chinese Foreign Ministry spokesperson Wang Wenbin said at a regular press conference: “China has repeatedly and firmly voiced its strong opposition to unilateral illegal sanctions. China will take all necessary measures to safeguard its rights and interests with resolve.” This was in response to questions about new U.S. sanctions on Iran. Wang explained that China is closely monitoring developments, and that its cooperation with Iran is conducted within international law and should not be interfered with or obstructed. Wang stressed that economic warfare and maximal pressure tactics do not solve problems; they fuel the conflict. China is the world’s largest importer of Iranian oil, and before the war, Tehran continued exporting millions of barrels of oil, most of which went to Beijing. Tehran has expressed confidence in its trading partners’ ability to withstand Trump administration pressure. Iranian Supreme National Security Council secretary Mohsen Rezaei warned that Tehran is prepared to halt all Gulf oil exports in response. The United States had announced on Monday new sanctions on 60 individuals and entities and a vessel, in a move said to cut a lifeline to Iran’s economy, though not reaching the harshest sanctions. In response to a question about the possibility of targeting Chinese banks with the new sanctions, U.S. Treasury Secretary Steven Mnuchin said: “No one is immune to U.S. sanctions.” Separately, a spokesman for the Qatari Foreign Ministry said on Tuesday that U.S. sanctions on Iran are unilateral, and Qatar supports mediation efforts to resolve the issue between the two countries. U.S. Defense Secretary James Mattis said on Monday that the Trump administration does not rule out using military force against Iran, even as Washington announces a “decisive economic attack” on Tehran. He told reporters, “We do not rule out aerial strikes anywhere in the Strait of Hormuz or across Iran,” adding that Tehran cannot bear the economic pressures being imposed. U.S. Treasury Secretary Mnuchin revealed on Monday Washington’s plan to economically “strangle” Iran, including threats of secondary sanctions, warning of grave consequences for countries that refuse to join the pressure campaign against Tehran. Mnuchin’s remarks come about six months after the war, stalled peace talks, and Iran’s continued obstruction of movement through the strategic Hormuz Strait. Mnuchin said at a press conference: “Our aim around the world is to cut every economic artery that keeps this regime in power, until Tehran stands alone.” He added, “We will hold everyone accountable, and this is the policy of economic strangulation we are applying to this regime.” He emphasized that countries that do not join U.S. sanctions “will share Iran’s isolation,” noting that President Donald Trump is engaging with world leaders to urge them to stop dealing with Tehran. The Treasury Department stated in a release that it had issued “decisions affecting five important sectors: digital assets, technology, gold, aviation, and maritime shipping, used by the Iranian regime to support its collapsing economy.” Before the announcement of U.S. sanctions, Iranian Deputy Foreign Minister Abbas Araghchi said on Monday that the crushing economic attack threatened by the United States on the Islamic Republic would amount to “admitting America’s defeat.” In a post on X, he addressed Americans: “Your narrative is flawed, as you claim that Iran’s military power has been dismantled, that 100 percent of its military factories have been destroyed, and that its nuclear program has been buried.” He went on: “There is, however, a need for the largest financial invasion in history and the mobilization of all institutions and forces in the United States. Is this a victory or an admission of America’s defeat?” “Another defeat.” Iranian Economy Minister Ali Ashzadeh warned the United States of “another defeat” after Washington announced new sanctions on Tehran, stating that the Islamic Republic has “a plan lasting two years” to counter them. Minister Alī Modarresi Zadeh told the official television: “The United States has done everything it can to test the resolve of the Iranian people and the country’s leaders, but it has failed each time. It seems they wish for another defeat.” He added, “The government is prepared and has a two-year plan to deal with these events.” In related news, the Pakistani army issued a statement on Tuesday that Chief of Army Staff Asif Munir held talks with Iran focusing on measures to prevent further escalation and to reopen the Hormuz Strait. The statement said Munir discussed regional peace and ways to reach a negotiated settlement of disputes. Munir, who is mediating between Iran and the United States, had held talks on Monday with Iranian President Hassan Rouhani in Tehran, according to Iran’s official television. The meeting followed discussions last week between U.S. President Donald Trump and the Pakistani military leader, according to a credible Reuters source. Pakistan has played a pivotal role in efforts to halt the Iran–U.S. war, mediating to a June memorandum of understanding, though peace talks appear to be stalling. A tanker reportedly attacked off the coast of Oman: Meanwhile, Britain’s Maritime Trade Operations said on Tuesday that a tanker was struck by an “undefined projectile,” damaging its engine room and rendering the vessel out of service as it sailed off the coast of Oman in the Hormuz Strait, about nine nautical miles northeast of Shiha, Oman. The nationality of the tanker and its voyage were not identified.

The U.S. announced an "economic D-Day" campaign Monday to isolate Iran from the global economy, threatening penalties against "enablers" that continue doing business with Tehran. The move is part of Washington's bid to sever the trade lifeline that has sustained Tehran's economy through nearly six months of war. While enforcement details are sketchy, the threat could still put the U.S. on a collision course with some of Tehran's major trade partners. China is the biggest buyer of Iranian oil and serves as a crucial link to the global economy for Tehran, accounting for about 90% of its oil exports, according to the U.S. government. China reported $9.96 billion in bilateral trade with Iran in 2025, excluding the roughly $31.2 billion in unreported Iranian crude oil exports to China that year, according to the U.S.-China Economic and Security Review Commission. Independent Chinese refiners take in the bulk of it, often rebranded as Malaysian or Indonesian crude and settled through intermediaries outside the dollar system, according to Kpler. The U.S. Treasury has sanctioned several of those refineries this year for Iranian oil purchases, while sparing Chinese financial institutions. Beijing has openly opposed U.S. sanctions against Iran, arguing that economic pressure will not resolve the disputes. In May, China ordered domestic firms to disregard U.S. sanctions on five refiners linked to the Iranian oil trade. While Beijing is unlikely to push back directly on Washington's sanctions push, it will "quietly step up compliance" among state banks and oil companies to avoid getting caught in the net, said Dan Wang, China director at Eurasia Group, pointing to “a dichotomy between the official statement and the private practice.” "Chinese authorities care more about dollar access in financing and market entry to the U.S.," she said. The Emirates, located just 50 miles from Iran across the Persian Gulf, has long been a major trading hub for Iran. The bilateral trade amounted to around $28 billion in 2024, when the Emirates was its largest source of imports, contributing over 30%, according to the World Trade Organization data. The UAE was also Iran's third-largest export destination, making up 12% of its shipments, totaling more than $7 billion. That relationship hit a snag last week as the UAE moved to suspend all trade and financial transactions with Iran, following two ballistic missiles fired toward Emirati territory, one of which targeted UAE-owned tankers. Iran has relied on UAE banks and its financial system to access the world economy through illicit, often murky transactions, and cutting off Iran would require more forceful actions from Emirati authorities to crack down on opaque financial and trading activity, according to U.S.-based think tank The Washington Institute. "The majority of Iran's transshipment, smuggling, and shadow banking activity takes place in Dubai, so Washington must do what it can to help the UAE's national leaders in Abu Dhabi convince and cajole Dubai's leaders to play ball," Matthew Levitt, a former U.S. Treasury official, wrote in a note on Monday. Turkey maintains significant commercial ties with Tehran, importing Iranian natural gas and exporting manufactured goods south. The Turkey-Iran bilateral trade reached $5.7 billion in 2024, according to the Turkish Ministry of Foreign Affairs, with Ankara exporting mostly machinery and parts, chemical and agricultural products, while importing energy products from Tehran. Meanwhile, under a 25-year gas supply contract between the two countries that expired at the end of July, Turkey's imports of Iranian gas spiked this year while Iran's share of Turkey's total natural gas imports rose to 18.6%, according to local media. While Ankara has sought to diversify toward other suppliers, expanding pipeline imports from Azerbaijan and Russia, it has, so far, not signaled that it intends to cut Iran off. Iraq, dependent on Iranian electricity and gas, has historically traded billions with Tehran. Iran renewed a five-year contract in March 2024 to supply Iraq with up to nearly 660 billion cubic feet of natural gas a year, and electricity imports from Iran accounted for more than 30% of its electricity generation in 2023, according to the U.S. Energy Information Administration. Iraq-Iran trade reached more than $10 billion in 2025, according to Reuters, with Tehran exporting food, consumer goods and other products to the Iraqi market. The trade has dwindled this year amid increased security risks in the region and intermittent disruptions along border crossings since the war started in late February. Iraq reportedly pays Iran around $4 billion to $5 billion a year for natural gas for electricity generation. The fresh U.S. sanctions could curtail Baghdad's payments for Iranian energy. India, among Iran's top five trading partners, has seen its bilateral trade with Iran fall in recent years to around $1.6 billion in the year ending March 2026, according to India's Department of Commerce, down from $2.3 billion in the year through to March 2023. New Delhi primarily exports rice, tea, sugar and pharmaceuticals to Iran, and imports dry and fresh fruits from Iran. In April, India resumed importing crude oil from Iran following a seven-year halt, after the U.S. temporarily lifted sanctions on Iranian crude exports. But those trades now will be tested if Washington makes good on its threat to sanction any entity, including Indian refiners, that have procured Iranian energy.

The United States has launched a trade offensive to cut off all sources of funding for Iran, and the U.S. Treasury Secretary, Scott Bessent, has threatened sanctions against any country that maintains commercial ties with Tehran, including China, as part of the so-called “economic D-Day” aimed at choking the Iranian economy. "From today, the actions of the Department of the Treasury and other agencies will tighten the net and block any possible source of income that finances the Islamic Revolutionary Guard Corps and the evil Iranian regime. We are applying a zero-failures approach," the Treasury secretary stated at a press conference. Thus, Bessent indicated that the U.S. government has identified "every node, every facility, and every network" Iran has used to continue oil trade and evade already imposed sanctions on the country. "There will be not a single moment of respite for the regime to rebuild its ability to inflict terror on the United States," he asserted. Donald Trump has been in contact in recent hours with various world leaders to convey to them the concrete actions to be implemented to block these sources of funding, and his administration has proclaimed that some of them are already yielding results. Scott Bessent warned that if countries do not take these measures on their own, the United States will act unilaterally, and those "bold enough to continue doing business with this regime" will face secondary sanctions, though no specific punishments were specified at the moment. "Countries cannot claim ignorance about facilitating this activity. Those who support Iran buy and transport its oil, facilitate the flow of its finances through stock exchanges and free-trade zones, welcome Iranian flights and maintain records in its name, turn a blind eye to maritime fuel transfers and overland transits, tolerate the illicit use of their banks, while hiding the extent of their complicity," he specified. In this line, the U.S. government’s actions will focus on five of the sectors Iran exploits in other countries: digital assets, technology, gold, aviation, and maritime transport. Additionally, the Office of Foreign Assets Control (OFAC) is working on sanctioning more than 60 entities, individuals, and vessels that allow Iran to "obtain illicit nuclear energy, technology, conduct cyber operations, and generate oil revenues." However, the Trump administration has not named any affected country, any concrete sanction, or deadlines for other states to comply with its requests, despite having stated in the days prior that it was preparing the "largest financial offensive ever orchestrated against an adversary." Nevertheless, they clarified they are working worldwide and signaled that measures would be announced in the coming hours and days; specifically, they detailed that actions against a financial institution would be unveiled by the end of the week. Asked about the lack of decisiveness and the delay in action, the Treasury official proclaimed that they consider it "important" to give countries a period of correction. "We believe a warning and a clear level of expectations are appropriate, and if people do not want to meet our expectations, then we expect—and they should expect—that they leave the dollar system," he stated. China in the crosshairs "No one is above the reach of U.S. sanctions," Bessent said when asked about sanctions on China, which is one of Iran’s main trading partners, though he noted that other options such as diplomacy are preferable. He added that all countries must be prepared to face retaliation and indicated that they will be the ones to blame. "No nation should expect to enjoy the benefits of our system while it helps those who seek to destroy it. The time has come for world leaders to choose between prosperity and isolation, peace and terror, the United States and Iran," he maintained.

Nearly six months into the offensive and airstrikes launched by the United States and Israel against Iran, this Monday the U.S. government reported a new commercial offensive advancing sanctions on all countries that maintain relations with Iran, including China. In a press conference, U.S. Treasury Secretary Scott Bessent stated that "as of today, the actions of the Treasury Department and other agencies will tighten the noose and block every possible income source that funds the Islamic Revolutionary Guard Corps and the evil Iranian regime." "We are applying a zero-faults approach," Bessent said to the media. He also assured that "there will be not the slightest respite for the regime to rebuild its ability to inflict terror against the United States," referring to Iran's strategy to evade already-imposed sanctions. The announcement comes almost in parallel with conversations that U.S. President Donald Trump has held with various world leaders to inform them of concrete actions to be taken to block these funding sources. In that vein, Bessent warned that if countries do not take these measures on their own, the United States will act unilaterally, and those "foolish enough to continue doing business with this regime" will face secondary sanctions, although he did not specify concrete punishments at this time. "Countries cannot plead ignorance that they are facilitating this activity. Those who support Iran buy and transport its oil, facilitate the flow of its finances through stock exchanges and free-trade zones, welcome Iranian flights, and maintain records in its name, turn a blind eye to maritime fuel transfers and overland transit, tolerate the illicit use of their banks, while hiding the extent of their complicity," he added. Along with all of this, these U.S. government actions will focus on five of the most vital sectors Iran exploits in other countries: digital assets, technology, gold, aviation, and maritime transport. The Office of Foreign Assets Control (OFAC) is, for its part, working on sanctioning more than 60 entities, individuals, and vessels that allow Iran to "obtain illicit nuclear energy, technology, carry out cyber operations, and generate oil revenues." Sanctions on China "No one is above the reach of U.S. sanctions," said Bessent when asked about sanctions on China, which is one of Iran’s main trading partners, though he stressed that other options such as diplomacy are preferable. The U.S. Treasury Secretary thus asserted that all countries must be prepared to face retaliation and that they will be the ones to blame for it. "No nation should expect to enjoy the benefits of our system while helping those who seek to destroy it. The time has come for world leaders to choose between prosperity and isolation, peace and terror, United States and Iran," he maintained.

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From today onward, the actions of the Treasury Department and other agencies will tighten the noose and block every possible source of revenue that funds the Islamic Revolutionary Guard Corps and the evil Iranian regime. We are implementing a zero-fuel-leaks approach," said the Treasury official at a press briefing. In this way, Bessent indicated that the US government has identified “every node, every facility, and every network” that Iran has used to continue oil trade and evade sanctions already imposed on the country. “There will not be a single breath of relief for the regime to rebuild its ability to inflict terror on the United States,” he stated. US President Donald Trump has held talks in recent hours with various world leaders to convey concrete actions to be implemented with the aim of blocking these sources of funding, and the Administration has proclaimed that some of them are already yielding results. Scott Bessent warned that if countries do not take these measures on their own, the United States will act unilaterally, and those “foolish enough to continue doing business with this regime” will face secondary sanctions, without detailing concrete punishments for the moment. “Countries cannot plead ignorance that they facilitate this activity. Those who support Iran buy and transport its oil, facilitate the flow of its finances through stock exchanges and free-trade zones, welcome Iranian flights and maintain records in its name, turn a blind eye to maritime fuel transfers and overland transits, tolerate the illicit use of their banks, while concealing the reach of their complicity,” he specified. In this line, US government actions will focus on five of the sectors “most vital” that Iran exploits in other countries: digital assets, technology, gold, aviation, and maritime transportation. Moreover, the Office of Foreign Assets Control (OFAC) is working to sanction more than 60 entities, individuals, and vessels that allow Iran to “obtain illicit nuclear energy, technology, carry out cyber operations, and generate oil revenues.” CHINA ALSO IN THE CROSSHAIRS “No one is above the reach of US sanctions,” Bessent said when asked about sanctions on China, which is one of Iran’s main trading partners, though he noted that other options such as diplomacy are preferable. The US Treasury leader stated that all countries must be prepared to face retaliation and indicated that they will be the ones responsible for it. “No nation should expect to enjoy the benefits of our system while helping those who seek to destroy it. The time has come for world leaders to choose between prosperity and isolation, peace and terrorism, the United States and Iran,” he maintained.

Chinese Foreign Ministry spokesperson Lin Jian China will closely watch relevant developments and do what is necessary to protect our legitimate rights and interests, Lin Jian, spokesperson from China's Foreign Ministry, told a press conference on Monday, noting that sanctions and pressure tactics do no help in resolving issues. They will only lead to escalation that serves no one's interest. Lin made the remarks in reply to a question on how China would respond if the US were to impose secondary sanctions tomorrow, as US Treasury Secretary Scott Bessent has threatened secondary sanctions against countries that trade or deal with Iran, and China has historically been a major buyer of Iranian oil. China calls on parties to act rationally and with restraint, and avoid taking any measure that may further escalate tensions or deal a blow to global economic growth and financial stability. They need to return to the right track of political settlement through dialogue and negotiation at an early date, Lin said during the press conference. Bessent has said to reveal severe measures on Iran when he gives a press conference at 1 pm EDT on Monday, Reuters reported. On Sunday, Bessent wrote in an opinion piece published in the Financial Times that "At dawn begins an economic D-Day - the single greatest financial offensive ever marshalled against an adversary." Without detailing specific measures, Bessent signaled the US would target nations that engaged with Iran's economy and financial system. "They would do well to consider the consequences of sustaining it," he wrote in the Financial Times, according to the report. "The US has few effective options left on the Iran issue and can only resort to stigmatizing normal trade between other countries — including China — and Iran, using the threat of secondary sanctions in an attempt to turn military strikes into blackmail and extortion against countries associated with Iran," Zhu Yongbiao, director of the Center for Afghanistan Studies at Lanzhou University, told the Global Times on Monday. Zhu said that the US military offensive has failed to achieve the expected results, and Washington is unwilling to continue bearing the high costs and unpredictable consequences of large-scale ground military operations. The US side views economic sanctions and secondary sanctions as currently available tools that are effective in the short term, and it can shift some of the pressure onto third countries. Bessent's opinion piece came after he claimed the US was to impose the "toughest" ever sanctions on Iran, urging China to cooperate, Reuters reported on August 20. Zhu said that Washington is trying to drag Beijing into the issue. However, China has consistently promoted talks and peace in the US-Iran conflict, advocating the resolution of issues through political dialogue rather than the use of force or sanctions. "It also firmly safeguards its own rights to economic development and opposes any country disrupting the normal trade order," Zhu noted. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, on Sunday suggested economic retaliation. "If the economic war continues, not a single drop of oil will be exported, neither through the Strait of Hormuz nor from anywhere in the Persian Gulf," Rezaei wrote in a social media post, according to Reuters. Fewer than 20 commodity vessels transited the Strait of Hormuz at the weekend, shipping data showed on Monday, as Iranian and US blockades restrict traffic through the chokepoint for energy shipments, according to Reuters.

The United States government has launched an unprecedented economic offensive to eliminate any flows of financing toward Iran. Scott Bessent, the U.S. Secretary of the Treasury, issued a direct warning to all nations with commercial ties to the Persian country, including China, as part of the so-called 'Economic D-Day,' aimed at achieving total isolation of the Iranian economy. "As of today, the actions of the Department of the Treasury and other agencies will tighten the noose and block every possible source of income that funds the Revolutionary Guard and the evil regime in Iran. We are adopting a zero-fail approach," Bessent said at a press conference. The official indicated that U.S. authorities have managed to identify "every node, every facility, and every network" that Iran has used to continue oil trade and evade already imposed sanctions. "There will be not a single moment of respite for the regime to rebuild its capacity to instill terror against the United States," he asserted. In recent hours, President Donald Trump has held conversations with several world leaders to detail concrete actions aimed at blocking those sources of financing. The administration said that some of these measures are already showing results. Bessent warned that if countries do not adopt these measures on their own initiative, the United States will act unilaterally. Those who "are foolhardy enough to continue doing business with this regime" will face secondary sanctions, although no specific punishments were announced at this time. "Countries cannot claim ignorance regarding facilitating this activity. Those who support Iran buy and transport its oil, facilitate the flow of its finances through stock exchanges and free-trade zones, welcome Iranian flights and maintain records in its name, turn a blind eye to maritime transfers of fuel and overland transits, tolerate illicit use of their banks, while at the same time concealing the extent of their complicity," the Treasury secretary detailed. The U.S. government's actions will focus on five key sectors Iran exploits in other countries: digital assets, technology, gold, aviation, and maritime transport. For its part, the Office of Foreign Assets Control (OFAC) is working on sanctioning more than 60 entities, persons, and vessels that allow Iran to "obtain illicit nuclear energy, technology, conduct cyber operations, and generate oil revenues." Despite announcing the preparation of the "largest financial offensive ever orchestrated against an adversary," the Trump administration has not named any affected country, nor has it presented concrete sanctions or timelines for other nations to comply with its requests. However, they clarified that they are working globally and that the measures will be announced in the coming hours and days. Specifically, they advanced that actions against a financial institution will be revealed this week. Asked about the apparent lack of firmness and the delay in action, Bessent proclaimed that they consider it "important" to allow a corrective period for countries. "We believe a warning and a clear level of expectations is appropriate, and if people do not want to meet our expectations, then we expect, and they should expect, to leave the dollar system," he stated. "No one is above the reach of U.S. sanctions," Bessent said when asked about possible sanctions against China, one of Iran’s main trading partners. However, he noted that other options, such as diplomacy, are preferable. The Treasury chief stated that all countries must be prepared to face retaliation and that they themselves will be the ones to blame for it. "No nation should expect to enjoy the benefits of our system while helping those who seek to destroy it. The time has come for world leaders to choose between prosperity and isolation, peace and terror, the United States and Iran," he concluded. Source: Infobae

Cairo/Washington, August 25 — Iran threatened to respond to the expanded American economic sanctions aimed at isolating its economy, and expressed confidence that its major trading partners would resist the American pressure campaign. About six months after the outbreak of the conflict, the United States is finding it difficult to end it. U.S. Treasury Secretary Janet Yellen disclosed the punitive measures yesterday, but did not go so far as to impose the harshest sanctions. Subscribe here. While Yellen said that countries that continue to trade with Iran risk being cut out of the dollar-based financial system, she refused to identify the countries that would be targeted by these sanctions or reveal when they would take effect, but said she would give them a grace period to comply with the new directives. When asked why she hadn’t imposed concrete sanctions on Iran or disclosed which countries would be targeted, she replied, “Why would I want to destroy the global financial system?” The Treasury Department announced new sanctions on 60 individuals, entities, and ships, but the list did not include any Chinese financial institutions suspected of facilitating Iranian oil trade. In response to a question about Chinese banks yesterday, Yellen said, “We want to make it clear today that no one is immune from American sanctions.” China has remained the largest buyer of Iranian oil for many years, but the U.S. blockade on Iranian ports, reimposed in mid-July, has already reduced Iran’s oil flows to China. Experts say Washington is concerned about China’s response to any sanctions that could target its banks ahead of expected talks next month between Donald Trump and Chinese President Xi Jinping, as any restrictions on China’s exports of critical metals are highly sensitive. China today affirmed that its cooperation with Iran operates within international law and should not be interfered with or obstructed. Oil prices fell for the second consecutive day as traders ignored the sanctions’s impact, even as market participants remained concerned about Iran’s ability to disrupt maritime navigation. A ship near the Strait of Hormuz was struck by an unknown shell and disabled about nine nautical miles northeast of Chiṣah, Oman, at the entrance to the Strait of Hormuz, according to the British Maritime Trade Operations authority. Iran had threatened, prior to the announcement of the latest sanctions, to confront any American economic measures with military action and with steps that would further depress Gulf oil exports. After the announcement, Iranian Economy Minister Ali Tayebnia Zadeh said, “We are fully prepared for American sanctions.” In a state television interview, Zadeh added, “Of course, the enemies want to wage an economic terrorist attack against us, but we also have our own means and we know how to play this game. They should not think that our approach is purely defensive and that we will only defend; they should expect an attack from us.” He noted that China and Russia did not “accept” the American measures and predicted that other countries would oppose them. Press TV quoted Brigadier General Hussein Mottahari, spokesman for the IRGC, promising strong strikes against the United States’ vital interests and energy corridors if the Iranian infrastructure is threatened. Iran and the United States signed a temporary agreement in June, but the accord, named “Islamabad Memorandum,” soon stalled, and Tehran resumed attacks that halted most Gulf energy exports. The Pakistani army said in a statement on Tuesday that Islamabad, which is mediating, has made “great progress” in its latest talks with Tehran focusing on measures to prevent further escalation and reopen the Hormuz Strait. Interior Minister Mohsen Naqvi, who accompanied Army Chief of Staff Asim Munir to Tehran, wrote on X: “The Iranian President openly shared his government’s view, and we conducted constructive discussions on related issues.” Mehdi Tabatabaei, an official in the President’s Office of Iran, said Munir’s visit to Iran yielded “very valuable diplomatic achievements whose results will soon become clear.” The White House and the U.S. State Department did not respond to requests for comment submitted outside business hours. There are no signs of a diplomatic solution. Although neither side has carried out large-scale attacks for weeks, there are no indications of a diplomatic path to end the war. Iran has endured decades under multiple U.S. and international sanctions that have weakened its economy, yet have not deterred its leadership. A Reuters/Ipsos poll released on Monday showed American public support for the war at its lowest since the early days of the conflict, with President Donald Trump’s popularity at an all-time low ahead of the November congressional elections. Preliminary data from Vessel tracking company Fortexa indicated that crude oil transfers through the Strait of Hormuz reached five million barrels per day yesterday, down from more than 20 million before the war, equivalent to about one barrel in five consumed worldwide. Thousands have died in this conflict, most in Iran and Lebanon, while Iran’s conventional military capabilities have significantly weakened, and its economy faces severe difficulties, while its former Supreme Leader Ayatollah Ali Khamenei was killed. Yet Iran remains capable of attacking Gulf neighbors and threatening oil tankers. The precise status of its nuclear program, which the United States and Israel aim to eradicate, remains unknown. Coverage by Ria Nawak in Islamabad; prepared by Doaa Mohamed, Mahmoud Reda Murad, and Ali Khafaaji for the Arabic bulletin; edited by Marwa Gharib. Our standards: Thomson Reuters Trust Principles.

There’s a China-sized hole in the Trump administration’s plan to wage an “economic D-Day” against Iran. When US Treasury Secretary Scott Bessent announced new sanctions on Monday targeting a range of individuals and entities alleged to support Tehran, and threatened more to come, Beijing was conspicuously absent from the list. China is Iran’s most important economic lifeline, and prior to the war, the two countries had a mutually beneficial oil arrangement: China bought nearly all the crude Iran managed to export at a significant discount, in exchange for ignoring Western sanctions. All told, Iranian oil provided about 12% of China’s imports. “We are level-setting with every country to tell them our expectations,” Bessent said. This year the US did step up sanctions on one of China’s biggest refineries over its purchases of Iranian crude, and the American naval blockade in the Strait of Hormuz has for now effectively halted most Iranian crude exports. But with Chinese leader Xi Jinping due to meet with Trump in Washington next month, the administration is clearly aiming to avoid a full-on economic war with Beijing — and that puts its Iran strategy at risk. “Only measures that materially sever Iran-China trade — including sanctions on Chinese banks, state-owned enterprises (SOEs) and economically critical ports/terminals — would accelerate Iran’s economic breaking point, and we do not expect Washington to go that far,” Rapidan Energy Group analysts wrote on Monday. Still, there’s another strategy available, Sen. Bill Cassidy (R-La.) told me this week: Pushing forward tariff legislation to crack down on China’s massive industrial overcapacity. Sanctioning Iranian oil effectively subsidizes the Chinese economy, Cassidy said, by creating a pool of cheap crude that only China is willing and able to snap up. Stronger trade barriers that prevent China from flooding US and global markets with underpriced manufactured goods would curb oil and gas demand inside China, he said, and that would mean less revenue for US adversaries like Iran and Russia.

US sanctions Chinese entities, issues global warning on ‘Economic D-Day’ against Iran Washington warns Iran-linked entities face removal from US dollar system as Trump presses world leaders to cut financial ties The United States on Monday announced fresh sanctions against 60 entities, individuals and vessels around the world, including some in mainland China and Hong Kong, and issued a warning demanding “immediate action” from nations maintaining economic and commercial ties with Iran. The measures are part of the Trump administration’s latest efforts to choke off Tehran economically after military strikes and diplomatic negotiations failed to reopen the Strait of Hormuz and end the six-month-long conflict. Dubbed “Economic D-Day” by the Trump administration, the new actions aim to expand Washington’s secondary sanctions, putting entities in multiple jurisdictions on notice. “Let me be clear: any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system. The clock just started ticking,” said US Treasury Secretary Scott Bessent at a press conference. Bessent added that US President Donald Trump is “making phone calls to world leaders with specific requests” to halt their engagement with the Iranian regime, but did not identify the countries he had contacted. The campaign’s effectiveness may ultimately depend on how far Washington is willing to press China, Iran’s most important remaining economic partner.

China has denounced the threat of US sanctions for its trade with Iran, saying any such measures would be illegal, and warned it will take “all necessary measures” to protect its national interests. Beijing’s rejection of the US threat of secondary sanctions for any country or entity continuing to trade with Tehran had been predicted. China buys an estimated 80% of Iran’s oil exports and it has defied previous US efforts to limit the flow of revenue to the Tehran regime. Its statement of opposition raises the question of how far the Trump administration would be prepared to go in confronting China and its financial system in the drive to isolate Iran. In making the sanctions threat on Monday, the US treasury secretary, Scott Bessent, announced an initial set of sanctions on 60 individuals, entities and vessels for alleged involvement in trade with Iran, but there were no Chinese financial institutions on the list, despite their involvement in financing the Iranian oil trade. The omission reflected US caution. Asked why the Trump administration had not declared immediate sanctions and had stopped short of naming potential sanctions targets, Bessent replied: “Why would I want to blow up the global financial system?” Financial and trade experts say the administration is well aware of the risk of Chinese retaliation ahead of a scheduled summit next month between Donald Trump and Xi Jinping. China could strike back through financial markets or with limits on its export of critical minerals. The spokesperson for China’s foreign ministry, Lin Jian, told reporters on Tuesday: “Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted. “China has already stated many times that it firmly opposes illegal unilateral sanctions. China will take all necessary measures to firmly safeguard its own rights and interests.” Iran has been economically wrecked by the war and the accompanying US blockade, but it maintained its defiance in response to Bessent’s threats of total isolation. The economy minister, Ali Madanizadeh, said on state television: “Our defence is no longer so defensive; the enemies should wait for an attack.” An oil tanker was reportedly hit on Tuesday by an unidentified projectile at the mouth of the strait of Hormuz. Only two commercial vessels were reported to have successfully made the transit through the narrow waterway on Monday. The declaration of what Bessent called Operation Economic Outcast suggests that the prospects of a resolution to the conflict with Iran are still remote. It also suggests a lean towards economic measures and away from military force after a six-month war that has not brought about the intended Iranian capitulation. The near closure of the strait of Hormuz and knock-on effect on oil prices and the global economy is a political risk for Trump as congressional elections loom in November. The US defense secretary, Pete Hegseth, insisted that further military action was not off the table. “By no means are we foreclosing using kinetic strikes anywhere in the strait of Hormuz or around Iran,” Hegseth told reporters on Monday. Bessent called the sanctions campaign unprecedented and compared it to the D-day Normandy landings, a turning point in the second world war. “Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections around the globe,” he said. “Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.” He said the US had identified those that continued to deal with Iran and each violator would be given a deadline to cut ties or face US sanctions. He said the deadlines imposed would depend on individual circumstances. “Any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system,” he said. “The clock just started ticking.” Bessent said Trump was “making phone calls to world leaders with specific requests to cease their interactions with the regime”, but he did not specify whether the US president would talk to his Chinese counterpart. Sina Toossi, a senior non-resident fellow at the Center for International Policy, said: “After nearly six months without a military or diplomatic victory, Washington appears to be trying to accomplish through intensified economic strangulation what military force has so far failed to achieve. But Tehran is answering that zero-sum approach with one of its own.” In apparent anticipation of the US measures, the United Arab Emirates, a close US and Israeli ally, announced it was suspending trade ties with Iran. Turkey, another trading partner with Iran, which has been critical of the US-led campaign against the Islamic Republic, has yet to respond to the US threat of sanctions. Andrew Miller, a senior fellow at the Center for American Progress, said: “The announcement of new economic sanctions on Iran and those countries trading with it signals what is plain to all: this war has brought the United States no closer to eliminating Iran’s nuclear programme or crippling the Iranian regime. But while sanctions can be effective, it is highly unlikely they will produce a quick settlement favourable to the United States.”

CHINA / SANCTIONS AGAINST IRAN China rejected the US threats against Iran's trading partners 24.08.2026 BEIJING (Uypress) – China on Monday rejected the threats of sanctions made by the United States against countries and companies that maintain economic ties with Iran and warned that it will take the necessary measures to protect its interests. The reaction came as the Donald Trump administration prepares a new economic offensive aimed at reducing Iranian income and isolating Tehran from international markets. The US Secretary of the Treasury, Scott Bessent, described the measures as the harshest sanctions campaign ever imposed against a US adversary. Washington intends to use secondary sanctions to penalize companies, banks, refineries, transporters and other foreign actors that continue to do business with Iran. This type of measure allows the United States to restrict foreign entities from accessing the US financial system even if their dealings with Iran occur outside the North American territory. Chinese Foreign Ministry spokesperson Lin Jian stated that Beijing will closely monitor the evolution of the situation and respond to any measure that harms its rights. “China will do what is necessary to safeguard its rights and legitimate interests,” he said during a press conference. Lin noted that sanctions and coercive policies do not help resolve conflicts and warned that they could trigger a new escalation with consequences for the economy and international stability. “They will only lead to an intensification of tensions that benefits no party,” he said. China typically opposes unilateral sanctions that do not have authorization from the United Nations Security Council and considers its trade relations with Iran legitimate. The US warning directly affects Beijing because China is Tehran’s main trading partner and the largest international buyer of Iranian oil. According to data cited by US agencies, Chinese purchases have at times represented nearly 90% of Iran’s crude exports. Imports fell in August as a result of maritime restrictions and US pressure, but Chinese independent refineries continue to procure significant volumes. Large Chinese state oil companies have limited their exposure since the reimplementation of US sanctions, while much of the operations were concentrated in private refiners and hard-to-track trading networks. Washington has previously sanctioned companies, refineries, financial entities and Chinese ships accused of interfering in the purchase or transport of Iranian oil. The new policy could considerably expand that reach. However, the United States has not yet specified to what extent it is prepared to impose sanctions on large Chinese companies without affecting its own economic dealings with Beijing. China’s warning does not necessarily mean a direct economic confrontation between the two powers. So far, Beijing has announced it will defend its interests but did not detail possible countermeasures. The effective application of the sanctions will determine whether the conflict remains focused on companies tied to Iranian trade or becomes a broader economic dispute between the United States and China. UyPress - Uruguayan News Agency

Tuesday, August 25, 2026 03:21 AM Home Latest News Markets Energy Forex Cars Opinion Exclusive Interviews All Sections Economy US “Victory Day” sanctions… will they crush Iran’s power without provoking China? Sanctions squeeze Tehran’s oil and financial networks China in the crosshairs of sanctions and banks outside them The Strait of Hormuz—the winning card—and oil watches developments !US “Victory Day” sanctions… will they crush Iran’s power without provoking China? A plume of smoke rises over Tehran after Israel and the United States announced strikes on Iran, February 28, 2026. Source: AFP Amr Fouad Published: August 25, 2026, 03:21 AM The United States announced a new set of sanctions on Iran, which the Trump Administration dubbed the “Economic Victory Day” in an effort to choke Tehran’s financial and commercial lifelines. The new package targets dozens of individuals, entities, and ships, expanding pressure on oil, shipping, gold, technology, and digital assets, but so far it avoids large Chinese banks. Washington places at the forefront the aim of reducing Tehran’s revenues and forcing a change in its behavior, but the continued constraint of the Strait of Hormuz—responsible for about 20% of global oil trade—means success depends on oil, China, and navigation. President Donald Trump and Treasury Secretary Steven Mnuchin described the sanctions as the harshest and largest ever, marking a dramatic shift from escalating military attacks to tightening the sanctions regime against Tehran. Related News New package Washington expands its economic war on Tehran by targeting 60 individuals, entities, and ships, warning states and companies that continue to deal with Iran of the risk of exclusion from the dollar-based financial system. The targeted sectors include digital assets, technology, gold, aviation, and shipping, while Washington gave actors a period to rectify their positions before moving to stricter measures. Analysts say the absence of major Chinese banks on the list highlights Washington’s attempt to pressure oil trade networks and middlemen without a direct financial confrontation with Beijing. Choking revenues Washington aims at oil as Tehran’s main source of hard currency, while sanctions seek to raise shipping and insurance costs and move crude revenues, limiting Tehran’s ability to bypass previous restrictions. The U.S. Treasury also says the campaign targets networks, intermediaries, and financial channels Iran uses to generate revenue and evade sanctions, including shipping, gold, and digital assets. JPMorgan said the true impact of the sanctions on the oil market will depend on how effectively they reduce Iranian exports, especially with China remaining a major crude buyer. Related News China test China presents the toughest link in the American strategy, as it has been the largest Iranian oil importer for years, while ABC Research Group notes that about 90% of Iran’s crude exports go to China. ABC analysts say: “This relationship makes Beijing a decisive factor in Washington’s ability to cut Iran’s revenues, especially since targeting Chinese banks could shift the confrontation from Iran to the world’s two largest economies’ economic ties.” Sovan Center says China is Iran’s most important funding lifeline, and Washington has previously targeted Chinese refineries but has so far avoided penalties on major banks financing Iranian oil trade. Treasury Secretary Mnuchin at a press conference in Rosalind, Stockholm, July 29, 2025. Treasury Secretary Mnuchin at a press conference in Rosalind, Stockholm, July 29, 2025. Source: AFP Banks and oil Washington recognizes that targeting Chinese financial institutions may be more effective in choking Iran’s oil trade, but it carries greater political and economic risks, so the current phase focuses on intermediaries, companies, ships, and trading networks. ABC Research Group says the success of the “Economic Victory Day” strategy hinges on Washington’s ability to shut down the financial and commercial channels that allowed Iran to withstand previous sanctions, not merely adding new names to sanction lists. Oil prices fell by more than two dollars per barrel yesterday Monday, despite ongoing concerns about supply disruptions in the Middle East, reflecting investor bets that economic pressure could increase the chances of political settlement. JPMorgan says the oil market will monitor the balance between reduced Iranian supply due to sanctions and the possibility that economic pressure could push Tehran to escalate threats against shipping or use Hormuz as a bargaining chip. Related News “Hormuz first” Banks’ analysts at JPMorgan said: “The Strait of Hormuz remains the most important test for any U.S. strategy targeting the Iranian economy, because even if oil revenues fall, Tehran could still threaten tanker movements and raise risk premia in the market.” Iran issued a new warning to ships not to pass through the strait without authorization, and published a list of 45 ships they say violated its rules, hinting at retaliation for transfer operations from ship to ship. Sovan Center notes that combining economic sanctions with naval pressure could push Tehran to reopen the strait and return to negotiations, but warns that pressure could also drive Tehran to use its available escalation tools. Beijing’s reply China expressed its refusal to expand U.S. sanctions, especially if Washington moves from targeting independent refineries and companies to major financial institutions. The Chinese Foreign Ministry said sanctions and coercive methods do not help resolve issues, and Beijing will take necessary steps to protect its interests, while Iran’s oil trade forms part of a broader network using the yuan, barter arrangements, and non-dollar channels. Sovan Center also notes that the Trump administration will have to balance choking Iran’s revenues with avoiding a direct financial confrontation with China, given the sensitivity of the two economies’ trade relations. Related News Iran’s capacity AZN Bank analysts said the history of U.S. sanctions on Iran shows Tehran’s ability to build front companies, shipping networks, and financial intermediaries to evade restrictions, making rapid results difficult. The U.S. Treasury states that its current strategy targets dismantling these networks more systematically, pursuing channels that help Iran move and use revenues outside the U.S. financial system. JPMorgan also views the main challenge for Washington as closing the trade and financing routes that allowed Iran to stay inside the global economy despite sanctions. Container ship in the Strait of Hormuz off Bandar Abbas, southern Iran, May 2, 2026. Source: AFP The real test AZN analysts wrote in a note: “The test of the Economic Victory Day centers on three variables: the volume of Iranian oil reaching China, Tehran’s ability to move revenues outside the U.S. financial system, and its willingness to use the Strait of Hormuz in response to pressure.” JPMorgan says sustained Chinese demand for Iranian crude will limit the sanctions’ ability to fully eliminate Tehran’s revenues, while any escalation in Hormuz could push the market’s risk premium back up. Thus, the drop in oil following the sanctions announcement does not definitively determine the campaign’s success, but rather presents markets with a more intricate equation combining sanctions, oil, China, and freedom of navigation. Oil prices also steadied on Tuesday after a more than 2% drop in the previous session, as investors assess the impact of stringent U.S. secondary sanctions on Iran. Related News US sanctions Oil Economic sanctions Strait of Hormuz Iran war Peace agreement Related materials Economy: Washington pounds Tehran’s trade arteries… will the “economic pariah” operation succeed? Markets: Tactical gains… gold prices “price in” the Victory Day sanctions and await Jackson Hole Forex: Dollar struggles after “Victory Day” sanctions… will it be defeated? Energy: Oil recovers… will sanctions be overcome as with strikes? Economy: America mobilizes the world against Iran: no one is insulated from our sanctions, including China Energy: Largest U.S. financial attack in history… will Tehran yield and anger Beijing? Most read Japan’s debt service costs jump to a record 230 billion dollars Gold prices in Syria deepen losses as the dollar falls against the lira Equinor: Hormuz disruptions revive Tanzania LNG project Limited decline in gold prices in Egypt today… 21-carat at 6,620 pounds Subscribe to our newsletter Follow us on Download the mobile app About us Privacy policy Disclaimer Contact us All rights reserved © 2026

China responded to the new sanctions imposed by the United States on Iran, saying it would safeguard its rights and interests. A spokesperson for the Chinese Foreign Ministry, on Tuesday, in response to questions about the new U.S. sanctions related to Iran, said Beijing's cooperation with Tehran “is conducted within the framework of international law and should not be interfered with or obstructed.” Spokesperson Liu Jian stated at a press conference that China “is closely monitoring developments, and will take all necessary measures to resolutely protect its rights and interests.” The United States announced on Monday new sanctions on 60 individuals, entities, and a vessel linked to Tehran, in a move it said would cut off Iran’s economic lifeline. However, the measures have not yet reached the level of sanctions that could be described as the harshest. China is Iran’s most important financial lifeline, importing 90% of its oil, even though the naval blockade had recently halted those exports. Analysts agree that the Trump administration is likely to curb its use of new measures against China, especially before Chinese President Xi Jinping’s visit to Washington late next month. So far, the U.S. Treasury has imposed sanctions on non-state Chinese refineries, but has avoided actions that would provoke Beijing to the utmost, particularly sanctions on major Chinese banks funding that trade. Beijing opposes the policy of sanctions and pressure, saying they will not help resolve the problem, and has urged all parties to take “responsible measures,” but Washington has threatened to impose severe sanctions on any country or entity that maintains economic ties with Iran. Still, it is unclear to what extent the Trump administration is willing to go to confront China, according to press reports.