Washington announced on Monday that the U.S. Treasury will move toward an “economic D-Day” against nations that continue to buy oil from Iran. Treasury Secretary Scott Bessent did not name any country directly, but his remarks left little doubt that China is the focus of the warning.
China’s role in Iran’s oil exports
According to a recent analysis, Iran shipped roughly $3.9‑$4.2 billion worth of oil in September 2025. The U.S.-China Economic and Security Review Commission reported that Chinese purchases account for about 90 percent of Iran’s exported oil, providing tens of billions of dollars in revenue that support Tehran’s government budget and military activities.
Potential impact on U.S. consumers
While the sanctions are aimed at foreign buyers, the Treasury noted that any disruption could eventually affect American energy prices. The national average price for gasoline has already risen to $4.10 per gallon, up from $3.15 a year ago, according to AAA.
China’s current import levels
China has already cut its Iranian crude imports in recent months. Vortexa data shows that average daily imports fell from about 1.4 million barrels to roughly 700,000 barrels as Chinese refineries reduced runs and drew down on‑shore inventories. Rystad analyst Tianyue Hu said a complete halt would have a limited immediate impact on China’s overall oil security because the country holds sizable crude reserves.
Broader geopolitical context
The announcement comes amid a strained U.S.–China relationship that has seen a renewed tit‑for‑tat exchange of sanctions following a trade war during the Trump administration. Atlantic Council senior fellow Daniel Tannebaum said China is the most impactful partner to target if the U.S. wants to dent Iran’s ability to finance its activities.
Responses from Beijing and other nations
Chinese Foreign Ministry spokesman Lin Jian dismissed the threat, saying sanctions and pressure tactics do not help resolve issues and only lead to escalation. India, which once imported Iranian oil, stopped doing so in 2019 after U.S. sanctions, though it briefly resumed purchases in April of this year amid an energy crisis.
Challenges in tracking oil flows
Accurately measuring how much oil moves through the Strait of Hormuz remains difficult. U.S. Energy Secretary Chris Wright affirmed the strait is open and oil is flowing, but Iranian officials claim otherwise. Third‑party ship‑tracking data suggests about half the volume claimed by Wright is accurate. Shadow fleets—tankers that conceal ownership and destinations—now account for roughly 50 percent of recent strait traffic, up from 12.5 percent a month earlier, according to tracking platform Kpler.
What’s next for U.S. policy?
Bessent emphasized that no one is above the reach of U.S. sanctions but stopped short of providing a timeline for any new measures. He also noted that the United States does not have “infinite patience.” Chinese President Xi Jinping is expected to visit the United States next month, a meeting that could shape the next steps in this diplomatic standoff.
Original reporting: El Paso News (HLL/CB) — read the source article.
