China has rejected the threat of fresh US sanctions over its trade with Iran, calling any such measures illegal and promising to take all necessary steps to safeguard its national interests. The rebuke came after US Treasury Secretary Scott Bessent unveiled an expanded sanctions campaign aimed at severing Iran’s economic lifelines, warning countries that continue dealing with Tehran that they risk being cut off from the dollar-based financial system.
Beijing had long been expected to resist the US move, as it buys an estimated 80 percent of Iran’s oil exports and has previously defied American pressure to curtail business with the Islamic Republic. The initial sanctions list, announced on Monday, named 60 individuals, entities and vessels allegedly involved in Iranian trade, but deliberately omitted Chinese financial institutions. Bessent, when asked why his administration had stopped short of targeting those banks, responded: “Why would I want to blow up the global financial system?”
Financial and trade experts said the omission reflected caution ahead of a scheduled summit next month between US President Donald Trump and Chinese leader Xi Jinping. They noted China could retaliate through financial markets or by restricting exports of critical minerals. In a statement to reporters on Tuesday, Chinese foreign ministry spokesperson Lin Jian said cooperation between China and Iran was carried out within the framework of international law and should not be interfered with. “China firmly opposes illegal unilateral sanctions,” he said. “China will take all necessary measures to firmly safeguard its own rights and interests.”
Iran, already economically battered by the war and the American blockade, remained defiant. Economy minister Ali Madanizadeh said on state television that “the enemies should wait for an attack.” Tensions near the Strait of Hormuz continued, with an oil tanker reportedly struck by an unidentified projectile at the waterway’s mouth; the United Kingdom Maritime Trade Operations Centre said the crew was safe and there was no immediate environmental damage. Iran and Oman held talks on joint management of the strait, while a Pakistani delegation led by army chief Field Marshal Asim Munir discussed reopening the vital shipping lane.
The sanctions announcement, which Bessent dubbed Operation Economic Outcast, led oil prices to fall about 4 percent to a one-week low, as traders viewed economic pressure as less disruptive to supplies than further military escalation. However, US Defense Secretary Pete Hegseth said military strikes were not ruled out, while Bessent compared the campaign to the D-day landings in the Second World War, pledging to “sever every economic lifeline” that sustains the Iranian regime. The United Arab Emirates has already announced it is suspending trade ties with Iran, while Turkey has yet to respond to the US threat.