Washington – Treasury Secretary Scott Bessent told reporters on Monday that the United States will launch a coordinated economic response against any country that continues to buy oil from Iran. While he did not name a specific nation, his remarks made clear that China, which imports roughly 90 percent of Iran’s exported crude, is the primary focus.
China’s role in Iran’s oil market
According to a recent analysis, Iran shipped between $3.9 billion and $4.2 billion worth of oil in September 2025. The U.S.–China Economic and Security Review Commission noted that Chinese purchases provide tens of billions of dollars in annual revenue for the Iranian government and its military programs.
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, as Chinese refineries run at lower rates and draw down on on‑shore inventories. Rystad Energy analyst Tianyue Hu said a complete halt would have a limited immediate impact on China’s overall oil security because the country already holds sizable crude reserves.
Potential impact on U.S. consumers
The Treasury’s warning could translate into higher fuel prices for American drivers. The American Automobile Association reports the national average price for gasoline has risen to $4.10 per gallon, up from $3.15 a year ago. Bessent warned that “no one is above the reach of U.S. sanctions,” but he declined to set a timeline for any new measures.
U.S. Energy Secretary Chris Wright has asserted that the Strait of Hormuz remains open and oil is flowing, while Iranian officials claim otherwise. Third‑party ship‑tracking data from Kpler indicates that shadow fleets—tankers that conceal ownership and destination—now account for about 50 percent of traffic through the strait, up from roughly 12.5 percent a month earlier.
Broader diplomatic context
The announcement arrives amid a fragile U.S.–China relationship that has already seen a trade war and a recent tit‑for‑tat exchange of sanctions. Chinese Foreign Ministry spokesman Lin Jian responded that “sanctions and pressure tactics do not help in resolving issues” and warned they could lead to escalation that serves no one’s interest.
Analysts such as Atlantic Council senior fellow Daniel Tannebaum argue that targeting China is the most effective way to curb Iran’s ability to fund its activities, given the scale of Chinese purchases.
Historical precedent
The United States has previously threatened sanctions on nations that trade with Iran. India, once a major importer of Iranian oil, halted its purchases in 2019 after U.S. sanctions, though it briefly resumed buying Iranian oil in April 2026 amid an energy shortage.
Because the exact volume of oil moving through the Strait of Hormuz remains uncertain, the full effect of any new sanctions on global oil markets is difficult to predict. Nonetheless, the Treasury’s stance signals a willingness to use economic tools to pressure Iran’s partners.
What’s next?
Chinese President Xi Jinping is slated to visit the United States next month, a meeting that could address the emerging sanctions threat. Bessent emphasized that the United States does not have “infinite patience,” but he stopped short of outlining specific penalties or timelines.
For now, American motorists should watch fuel prices closely, as any escalation in sanctions could filter down to higher pump costs.
Original reporting: KTVZ (Central Oregon) — read the source article.
