US Targets Iran's Trade Lifelines in 'Economic D-Day' Campaign

The US has announced an 'economic D-Day' campaign to isolate Iran from the global economy, threatening penalties against countries and entities that continue doing business with Tehran.

The move aims to sever Iran's trade lifeline, which has sustained its economy through nearly six months of war. China is the biggest buyer of Iranian oil, accounting for about 90% of its exports, worth $9.96 billion in bilateral trade in 2025, excluding unreported crude oil exports.

The US Treasury has sanctioned several Chinese refineries this year for Iranian oil purchases, but Beijing has openly opposed US sanctions against Iran and ordered domestic firms to disregard them. However, China is likely to 'quietly step up compliance' among state banks and oil companies to avoid getting caught in the net.

Other countries exposed to US sanctions include the UAE, which suspended all trade and financial transactions with Iran after two ballistic missiles fired toward Emirati territory last week. Turkey has significant commercial ties with Tehran, importing Iranian natural gas and exporting manufactured goods south.