U.S. Treasury Secretary Scott Bessent announced on Monday that the United States will step up enforcement against nations that continue to purchase oil from Iran. While he did not name any country outright, his remarks made clear that China, which accounts for roughly 90 percent of Iran’s exported oil, is the primary focus of the new policy.
What the Treasury said
“We find that the best way to engage with countries is through quiet diplomacy, and we are level‑setting with every country to tell them our expectations,” Bessent told reporters. “We know who they are. They know who they are.” He described the announcement as a “warning shot” and indicated that additional sanctions could follow, though no broad measures targeting a specific nation were detailed at the time.
China’s role in Iranian oil sales
According to a U.S.-China Economic and Security Review Commission report, Chinese purchases represent about 90 percent of Iran’s oil exports, delivering tens of billions of dollars in revenue that support Tehran’s government budget and military activities. In September 2025, Iran shipped between $3.9 billion and $4.2 billion worth of oil, most of it to China.
Chinese officials responded through Foreign Ministry spokesman Lin Jian, who said sanctions and pressure tactics do not resolve disputes and only lead to escalation. Lin added that China is closely monitoring developments and will take necessary steps to protect its own rights and interests.
Impact on Chinese oil security
China’s imports of Iranian crude have already fallen. Vortexa data shows that average daily imports dropped from about 1.4 million barrels before the war to roughly 700,000 barrels in recent months, due in part to reduced refinery runs and drawdowns from on‑shore inventories. Energy analyst Tianyue Hu noted that a complete halt in Iranian crude imports would likely have a limited immediate effect on China’s overall oil security because the country already holds sizable crude inventories.
Potential ripple effects for U.S. consumers
U.S. consumers are already feeling higher fuel costs linked to the conflict with Iran. The national average price for gasoline has risen to $4.10 per gallon, up from $3.15 per gallon a year ago, according to AAA. Bessent warned that further sanctions could push prices higher, though he declined to set a timeline for any actions.
Broader geopolitical context
The new stance comes amid a strained U.S.–China relationship that has seen a trade war, reciprocal sanctions, and ongoing strategic competition. Analysts such as Daniel Tannebaum of the Atlantic Council have long argued that targeting China’s purchases is the most effective way to curb Iran’s ability to fund its activities.
Historically, the United States has also pressured other Iranian oil buyers. India, for example, halted its imports of Iranian crude in 2019 after U.S. sanctions, though it briefly resumed purchases in April of this year amid an energy shortage.
Uncertainties and next steps
Accurately measuring oil flows through the Strait of Hormuz remains difficult. While Energy Secretary Chris Wright maintains that the strait is open and oil is flowing, Iranian officials dispute that claim, and third‑party ship‑tracking data suggests a lower volume than U.S. officials have cited. Shadow fleets—tankers that conceal ownership and routes—are also contributing to the opacity, with recent data indicating they now account for about half of the traffic through the strait.
Chinese President Xi Jinping is slated to visit the United States next month, a meeting that could address the emerging sanctions issue among other bilateral concerns.
Original reporting: 40/29 / KHBS (NW Arkansas) — read the source article.
