US Threatens Severe Sanctions on Nations Buying Iranian Oil, Puts Focus on China

US Treasury Secretary Scott Bessent vowed an “economic D-Day” on Monday for countries that purchase oil from Iran, a warning aimed primarily at China, which buys the vast majority of the exported petroleum.

While Bessent did not explicitly name Beijing during his remarks, he made it clear that Washington is targeting those keeping Tehran's economy afloat. “We know who they are. They know who they are,” Bessent stated, describing the announcement as a warning shot despite no immediate broad measures being announced against specific nations.

Chinese Foreign Ministry spokesman Lin Jian responded during a regular press briefing by criticizing the approach, stating that sanctions and pressure tactics only lead to escalation. Lin added that China is closely following the situation and will take all necessary measures to safeguard its own rights and interests.

According to the U.S.-China Economic and Security Review Commission, Chinese purchases account for roughly 90 percent of Iran’s exported oil, providing billions of dollars that support the Iranian government and military. Nomura reports indicate that a significant portion of China's oil and liquefied natural gas transits through the Strait of Hormuz, though China has already reduced its intake of Iranian crude in recent months.

Analysts note that while a complete halt would have a limited immediate impact due to existing inventories, new sanctions could further strain relations between Washington and Beijing following a previous trade war and recent exchanges of retaliatory sanctions.

The global impact of these tensions also reaches American consumers, who are facing higher gas prices averaging $4.10 a gallon compared to $4.15 last year, driven by ongoing conflict and fluctuating oil flows through contested shipping lanes.