Trump's Economic Blitz on Iran Sparks Gold Sell-Off
US President Donald Trump's plan to intensify economic pressure on Iran has sparked concerns about retaliatory actions from China. The US Treasury Department has imposed sanctions on over 1,000 individuals and entities since January 20, targeting Iran's shadow oil fleet, shipping insurers, and digital exchanges.
The recent measures have frozen an estimated $500 billion in Iran-linked cryptocurrency, with the OFAC warning two larger Chinese banks that they could face secondary sanctions if Iranian funds were found moving through their systems. However, experts warn that hitting these banks or imposing other sanctions could trigger retaliatory actions from Beijing.
Trump's administration is also exploring alternative options, including a land blockade, which would require assistance from Iran's neighbors and increase pressure on the Iranian people by halting imports of food, energy, and textiles. Meanwhile, gold prices have dropped below key support at $4,444.70, with some analysts predicting an acceleration of selling pressure that could push futures towards the next significant support at $4,397.79.