US Tightens Economic Pressure on Iran as China Remains Key to Sanctions Strategy

The United States is intensifying economic pressure on Iran after six months of military conflict and stalled negotiations failed to produce an agreement, with Washington targeting Tehran’s financial networks and international trading links in a new push to weaken its ability to resist.

US Treasury Secretary Scott Bessent described the latest measures as a broad economic campaign aimed at Iran and its commercial partners. He said the strategy was intended to increase the financial cost of Tehran’s actions while reducing the need for further US military operations.

Washington has announced sanctions against 60 individuals, entities and vessels, while expanding the range of commercial activities that could face secondary sanctions. The new measures cover areas including digital assets, gold, technology, aviation and shipping.

However, the approach has drawn attention because no major Chinese financial institutions were included, despite China remaining Iran’s largest oil customer.

China accounted for more than 80% of Iran’s seaborne crude exports last year. Imports reportedly fell to about 534,000 barrels per day in August 2026, compared with an average of 1.4 million barrels per day in 2025, following tighter US restrictions on Iranian oil.

For years, Iranian crude has continued reaching China through complex networks of traders and intermediaries, often with cargoes declared as originating from other countries. Major Chinese state-owned refiners have generally avoided openly purchasing Iranian oil since US sanctions were reimposed in 2019.

Washington has previously warned Chinese banks about possible secondary sanctions but has avoided directly targeting major financial institutions. Analysts said the effectiveness of the latest campaign could depend heavily on whether the Trump administration is willing to impose penalties on Chinese entities.

Iran has rejected US pressure and vowed to retaliate. Iranian officials said the country’s main trading partners would resist Washington’s demands, while senior figures warned that further attacks on Iranian infrastructure could trigger military responses and disruptions to oil exports.

Mohsen Rezaei, a former commander of the Islamic Revolutionary Guard Corps, warned that Iran could halt oil exports entirely if the economic campaign continued. Iranian officials also threatened action against regional states that assist efforts to isolate the country.

China called for calm and opposed further unilateral sanctions. Foreign Ministry spokesman Lin Jian said additional restrictions would worsen tensions and harm global economic and financial stability. Beijing has repeatedly defended its trade with Iran as lawful and said it would protect Chinese companies from outside interference.

The pressure campaign comes as Iran’s economy faces severe strain. The rial recently fell to a record low, while inflation and rising food prices have increased pressure on households. The International Monetary Fund expects Iran’s economy to contract by more than 5%.

Despite the economic difficulties, Iran has spent decades adapting to US sanctions. Whether Washington’s latest measures achieve their intended impact may ultimately depend on China and the willingness of the United States to risk a wider confrontation with Beijing over Iranian trade.