Full story
China at the center
The U.S. announced an "economic D-Day" campaign to isolate Iran from the global economy, and China was identified as the biggest buyer of Iranian oil, accounting for about 90% of its oil exports, according to the U.S. government.
“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”
CNBC reported that 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.
Reuters said the Treasury Department announced new sanctions on 60 individuals, entities and vessels but the list did not feature any of the Chinese financial institutions suspected of facilitating Iran's oil trade.
Reuters also quoted Scott Bessent saying, "no one is above the reach of U.S. sanctions," in response to a question about Chinese banks.
The same Reuters report said China has openly opposed U.S. sanctions against Iran, arguing that economic pressure will not resolve the disputes, and that China said its cooperation with Iran is conducted within the framework of international law and should not be interfered with or disrupted.
Beijing rejects unilateral pressure
China said its cooperation with Iran complies with international law and should not be disrupted, with China’s Foreign Ministry spokesperson Lin Jian saying, "China will take all necessary measures to firmly safeguard its own rights and interests," according to DW.
In the same Reuters report, China said it had not "accepted" the U.S. measures, and Reuters reported that Iran’s Economy Minister Ali Madanizadeh predicted other countries would resist them.
Reuters quoted Bessent saying, "We want to make clear here today that no one is above the reach of U.S. sanctions," in response to a question about Chinese banks.
NBC News reported that Bessent said President Donald Trump was making phone calls to world leaders with "specific requests" to cease trading with the Iranian regime.
The Guardian framed the test of the U.S. rhetoric as whether countries such as India, China and Russia believe continued trade with Iran would lead to credible U.S. reprisals against their economies.
What sanctions could change
The U.S. Treasury said the new sectoral sanctions determinations issued today target five of Iran's most vital lifelines that it exploits in other countries: digital assets, technology, gold, aviation and shipping, according to DW.
“target five of Iran's most vital lifelines that it exploits in other countries: digital assets, technology, gold, aviation and shipping”
Reuters reported that Bessent stopped short of the most punishing sanctions, declined to give a timeline or identify which may be targeted, and said he would give countries time to comply with the new directive.
Reuters also said oil prices fell for a second day as traders brushed off the impact of the sanctions, while market participants remained wary of Iran's continued ability to disrupt shipping.
DW reported that traffic through the Strait of Hormuz fell sharply, with just two commodity tankers transiting the vital energy chokepoint on Monday, the lowest daily total since early May.
In a separate Reuters account of the wider conflict, an oil tanker was struck on Tuesday by an unidentified projectile and disabled about 9 nautical miles (17 km) northeast of Oman's Ash Shishah, which lies at the entrance to the Strait of Hormuz, according to the United Kingdom Maritime Trade Operations.