Washington announced a new round of economic pressure aimed at any nation that continues to buy oil from Iran. Treasury Secretary Scott Bessent told reporters on Monday that the United States is preparing an “economic D-Day” for those countries, and while he did not name any nation outright, his remarks left little doubt that China is the primary target.
China’s role in Iran’s oil exports
According to a recent analysis, Iran shipped roughly $4 billion worth of oil in September 2025. The U.S.-China Economic and Security Review Commission estimates that Chinese purchases account for about 90 percent of Iran’s exported oil, delivering tens of billions of dollars in revenue that fund Tehran’s government budget and military activities.
China’s reliance on Iranian crude has already begun to wane. Vortexa data shows that imports fell from an average of 1.4 million barrels per day before the conflict to about 700,000 barrels per day in recent months, as Chinese refineries reduced runs and drew down on on‑shore inventories. Rystad analyst Tianyue Hu notes that a total halt in Iranian imports would have a limited immediate impact on China’s overall oil security because of the already reduced volumes and large strategic reserves.
Potential impact on U.S. consumers
U.S. officials warn that tighter sanctions could push global oil prices higher, affecting American drivers. The national average price for gasoline is currently $4.10 per gallon, up from $3.15 a year ago, according to AAA. Bessent emphasized that “no one is above the reach of U.S. sanctions,” though he stopped short of providing a timeline for any new measures.
Broader diplomatic context
The announcement arrives amid a fraught relationship between Washington and Beijing. The two countries were locked in a trade war during the Trump administration and have recently exchanged tit‑for‑tat 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 further escalation.
Analysts such as Atlantic Council senior fellow Daniel Tannebaum argue that targeting China is the most effective way to dent Iran’s ability to finance its activities, given the scale of Chinese purchases.
Historical precedents and regional dynamics
The United States has previously threatened sanctions on Iran’s trade partners. India, once a major importer of Iranian oil, halted its purchases in 2019 after U.S. sanctions, though it briefly resumed buying in April 2026 amid an energy crisis.
Uncertainty remains about how much oil is actually moving through the Strait of Hormuz. While U.S. Energy Secretary Chris Wright says the strait remains open, Iranian officials claim otherwise, and third‑party ship‑tracking data shows a discrepancy. Shadow fleets—oil tankers that conceal ownership and destination—now account for roughly half of the traffic through the strait, according to tracking platform Kpler.
What’s next?
Chinese President Xi Jinping is slated to visit the United States next month, a meeting that could shape how both sides respond to the looming sanctions. Bessent reiterated that the Treasury does not have “infinite patience,” but declined to set specific deadlines for any actions.
For now, American consumers and businesses will watch closely as the U.S. government balances pressure on Iran’s oil trade partners with the potential domestic cost of higher energy prices.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
