US Sanctions Aim to Cut Off Iran's Economic Lifelines
The US has been imposing sanctions on Iran for decades, but its latest measures aim to tighten the financial noose. Since February, Washington has been applying pressure on Tehran, but six months later, there has been no agreement. The White House now appears to have moved to Plan B: economic pressure to force Iran's surrender.
In a move to inflict an 'Economic D-Day' on the country, US Treasury Secretary Scott Bessent announced new sanctions on 60 individuals, entities, and vessels last week. The list included none of China's suspected financial institutions facilitating Iran's oil trade. However, the UAE has suspended all forms of trade with Iran following a missile attack.
China remains the largest buyer of Iranian oil, accounting for over 80% of Iran's seaborne crude exports last year. US restrictions on Iranian oil exports have drastically reduced China's imports to about 534,000 barrels per day (bpd) in August 2026 from an average of 1.4 million bpd in 2025.
Bessent hinted at a 'major announcement' concerning sanctions on a financial institution by the end of the week. Daniel Fried, a former US State Department sanctions coordinator, said the measures were less forceful than expected, but economic pressure is still preferable to war. Ali Wyne, senior adviser on US-China relations, noted that the significance of the announcement depends on President Trump's willingness to enforce it.