Trump's Economic Isolation Plan for Iran Risks Backlash from China
The Trump administration has launched a new campaign to economically isolate Iran, dubbed 'Operation Economic Outcast'. The plan aims to force Iran's trading partners to choose between maintaining commercial ties with Tehran and access to the US financial system. However, experts say the initiative may backfire if Washington doesn't take concrete action against major Chinese financial institutions.
US Treasury Secretary Scott Bessent unveiled the operation on August 24, warning that violators would face US sanctions. But when asked about China, which has been the dominant buyer of Iranian oil, Bessent said 'no one is above the reach of US sanctions.' He added that any entity facilitating money laundering for Iran would be removed from the US dollar system.
The question remains whether Washington will target Chinese banks and oil buyers central to Iran's revenue. Experts warn that such a move could provoke a response from Beijing, potentially reigniting a trade war ahead of Xi Jinping's planned visit to Washington on September 24.