US Readies Economic Straitjacket for Iran Oil Exports

The US Treasury Department is preparing to impose unprecedented economic pressure on Iran, according to Treasury Secretary Scott Bessent. The move would target the country's oil exports, which are largely bought by China.

China purchases more than 90% of Iran's oil exports, and penalties on entities that facilitate these transactions could significantly reduce Tehran's oil revenues.

Bloomberg Economics analyst Chris Kennedy cautioned that targeting Iran's remaining options risks blowback on the US economy. 'Unless the president decides to prioritise addressing the Iran threat over all other issues, and namely China, it's unlikely any action they take is going to materially change Iran's calculus,' he said.

The Trump administration has already sanctioned some Chinese teapot refineries and firms since the start of the US-Iran conflict in late February. However, major Chinese banks that finance the trade have not been targeted yet.