China Rejects US Sanctions Threat Over Iran Trade
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- China's foreign ministry (spokesperson Lin Jian) denounced the US threat of secondary sanctions over Iran trade as illegal and vowed to take "all necessary measures" to protect its interests.
- Treasury Secretary Scott Bessent announced initial sanctions on 60 individuals, entities, and vessels for alleged Iran trade involvement, but no Chinese financial institutions were named — a reflection of US caution ahead of a scheduled Trump-Xi summit next month.
- Iran sells an estimated 80% of its oil exports to China, which has defied previous US efforts to limit revenue flow to Tehran.
- Oil prices fell about 4% to roughly $87/barrel on Tuesday after the sanctions announcement, as traders viewed economic pressure as posing less risk to oil supplies than further military escalation.
- An oil tanker was hit by an unidentified projectile at the mouth of the Strait of Hormuz on Tuesday, with only two commercial vessels successfully transiting the narrow waterway on Monday.
- Iran and Oman held talks on joint management of the Strait of Hormuz, with Oman's foreign minister Badr al-Busaidi saying hopes remained for announcing a temporary agreed route soon.
- The UAE suspended trade ties with Iran in apparent anticipation of US measures; Turkey, another Iranian trading partner critical of the US-led campaign, has yet to respond.
Why it matters: Bessent's omission of Chinese banks from the sanctions list — despite China buying 80% of Iran's oil — shows Washington won't risk financial-system blowback before the Trump-Xi summit, even as it pressures other countries to cut ties with Tehran. Six months of military action failed to produce Iranian capitulation, leaving economic strangulation as Washington's primary remaining lever.
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