US-China Ties at Risk as Washington Imposes 'Economic D-Day' on Iran

US Treasury Secretary Scott Bessent described new sanctions against Iran as an 'economic D-Day' and warned that any economic engagement with the regime would expose those responsible to US power. China, Iran's top trade partner, has pushed back on what it called 'illegal unilateral sanctions.'

The new measures aim to cut off all potential sources of revenue to Iran, which receives up to 90% of its oil exports from China, some of it through independent refineries that rebrand or use intermediaries to bypass US sanctions. Chinese Foreign Ministry spokesperson Lin Jian said cooperation between China and Iran 'has always been conducted within the framework of international law and should not be interfered with or disrupted.'

Bessent warned that no one was above the reach of US sanctions, but did not target major Chinese banks in the new package, focusing on 60 smaller entities, individuals, and vessels instead. However, if large Chinese companies and banks are hit with sanctions, China may respond with equivalent retaliatory measures while maintaining its ties to Iran.