President Donald Trump's administration, on August 24, 2026, initiated what Treasury Secretary Scott Bessent dubbed an "economic D-Day" and an "economic onslaught" against Iran, threatening secondary sanctions for countries that continue business with Tehran. This move aims to sever Iran's remaining links to the global economy and enforce "total financial isolation" to force an "endgame" in the conflict that began in February. The Treasury Department, however, stopped short of immediately imposing penalties, indicating that countries would be given time to comply.
Despite the broad warning, which Bessent stated meant "no one is above the reach of U.S. sanctions," the administration has not yet directly targeted China, Iran's largest trading partner. China reported $9.96 billion in two-way trade with Iran in 2025, and its purchases of Iranian oil, estimated at $31.2 billion, account for approximately 90% of Iran's oil sales, according to the US-China Economic and Security Review Commission. This omission has led to questions about the administration's resolve, with analysts like Brett Erickson of Obsidian Risk Advisors noting that excluding China would significantly limit the scope of the pressure campaign.
Until now, the U.S. sanctions regime has only targeted minor China-based entities, such as Hengli Petrochemical (Dalian) Refinery earlier in April, over alleged Iranian oil purchases. Crucially, Chinese financial institutions, which are vital to Iran's oil trade, have remained untouched. Jennifer Kavanagh of Defense Priorities suggested that the U.S. is unlikely to cut off Chinese economic ties with Iran due to the potential for Chinese retaliation and its leverage against the U.S. Brent crude prices saw a jump following the U.S. decision to revoke Iran's oil sales license, rising from approximately $72 to $75.75 a barrel.
