US Economic D-Day Threat Against Iran Halted by Risk of Clash with China

The threat of an 'economic D-Day' against Iran by US President Donald Trump's administration has gained momentum, but its execution may be hindered by a potential clash with China. The sanctions would allegedly strangle Iran economically, but industry estimates suggest that 90% of Iran's oil is destined for China.

US Treasury Secretary Scott Bessent threatened to impose an 'economic onslaught against Iran's financial connections around the globe,' and included dozens of new sanctions on firms, individuals, and vessels. However, this move may backfire as it could antagonize China, which has been offering resistance against US tariff wars.

Given that Trump is scheduled to meet with Chinese Premier Xi Jinping in September, any deterioration in relations would likely upend his objectives in the Middle East. Bessent emphasized that 'no one is above the reach of US sanctions,' but he prefers 'quiet diplomacy' and has chosen not to name specific targets.