People pass by a mural portraying Iran’s late Supreme Leader Ayatollah Ali Khamenei on a street in Tehran, August 13, 2026. — Reuters
- China rejects U.S. sanctions on Iran, stating that pressure alone won’t resolve the ongoing crisis.
- According to Kpler data, Beijing imports over 80% of Iran’s exported oil.
- Former President Trump issued a warning about potential economic repercussions targeting countries supporting Iran.
The U.S. Treasury Secretary, Scott Bessent, announced plans to impose what he described as “the harshest sanctions in history” on Iran, aiming to reduce the need for extensive military action. His comments came Thursday after President Donald Trump previously threatened “economic warfare” and warned of severe economic sanctions against any nation providing support or “lifelines” to Iran. Bessent indicated he would release more details next week.
Oil prices soared to their highest levels in over three weeks on Thursday, driven by U.S. threats of financial penalties believed to pressure Iran into ending a nearly six-month conflict that has kept millions of barrels of Middle Eastern oil stranded.
Bessent told CNBC, “I’m not entirely sure why oil prices jumped on this news. If we’re applying maximum economic pressure, that likely means there won’t be a large-scale military escalation,” referring to military interventions.
The ongoing conflict has resulted in thousands of deaths and involved Gulf nations, causing market instability. Iran has demonstrated its ability to restrict shipping through the Strait of Hormuz, a strategic waterway that transported around 20% of global oil trade before February.
Both the U.S. and Iran previously announced ceasefire agreements in April and June meant to restore free shipping through the Strait and move towards ending hostilities. However, these deals quickly fell apart each time.
Details on the sanctions are expected soon
Iran has endured nearly five decades of strict economic sanctions since its 1979 Islamic Revolution. Before Bessent made his statements, Iran’s foreign ministry condemned U.S. sanctions, describing them as “economic terrorism” and asserting they would not diminish Iran’s resolve to protect its independence, dignity, and sovereignty.
Bessent plans to provide more specifics about the upcoming sanctions package and outline exact measures during a Monday press conference. “It’s a coordinated effort—the blockade on Iran coupled with the toughest sanctions ever,” he stated, referencing a U.S. naval blockade enacted in April and temporarily paused in June.
He emphasized, “This approach will destabilize Iran’s regime. It’s time for our allies and the entire international community to decide what they want to do.”
According to 2025 data from analytics firm Kpler, China purchases over 80% of Iran’s oil exports. Engaging in further economic measures targeting China—an important trading partner that supplies the U.S. with vital rare-earth minerals—could provoke retaliation.
When asked about the possibility of targeting China for its business ties to Iran, Bessent responded that such discussions are best kept private. “Remember, China sources about 50% of its energy from the Gulf. It would serve them well to cooperate with us,” he added.
The Chinese embassy in Washington stated, “Sanctions and pressure do not resolve the issues,” urging all parties to engage in political and diplomatic efforts to find a solution.
Potential severe economic consequences
On social media Wednesday, Trump vowed to pursue “economic warfare and unprecedented isolation,” though he did not specify exact actions or name any nations, including allies involved in peace mediation. “Any country that allows its financial institutions, businesses, airports, or government agencies to support Iran will face enormous economic consequences,” he wrote.
Domestically, Trump faces pressure to end the unpopular conflict, especially as high fuel prices hurt his approval ratings and threaten his party’s control of Congress in midterm elections scheduled for November.
Iranian Foreign Minister Abbas Araqchi dismissed Trump’s comments as an attempt to distract from U.S. internal financial problems, such as record-high debt and rising interest rates. He argued that continuing failed policies would only lead to further setbacks and deepen Iranian resistance.
It’s worth noting that Trump’s social media threats and statements are not always followed by concrete action.