China has rejected a US threat to impose secondary sanctions on countries and entities that continue trading with Iran, calling the measures illegal and warning it will take “all necessary measures” to protect its rights and interests.
The US Treasury has already announced sanctions against 60 individuals, entities and vessels allegedly involved in trade with Iran, but no Chinese financial institutions were included. US officials said the campaign would give violators deadlines to cut ties, with timing based on individual circumstances.
Why China is resisting the US campaign
China buys an estimated 80% of Iran’s oil exports and has resisted earlier US efforts to restrict the flow of revenue to Tehran. Foreign ministry spokesperson Lin Jian said China-Iran cooperation is conducted within international law and should not be interfered with or disrupted.
The absence of Chinese financial institutions from the initial US list reflects Washington’s concern about escalation. Treasury Secretary Scott Bessent said the administration was weighing the risk to the global financial system, while experts cited in the reporting warned that Beijing could retaliate through financial markets or restrictions on critical-mineral exports.
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What the US sanctions operation includes
Bessent described the campaign, called Operation Economic Outcast, as an effort to sever Iran’s financial connections worldwide. He said entities facilitating money laundering for Iran would be removed from the US dollar system and that President Donald Trump was making calls to world leaders asking them to end dealings with Tehran.
The United Arab Emirates said it was suspending trade ties with Iran. Turkey, another Iranian trading partner that has criticised the US-led campaign, had not responded to the threat at the time of the report.
Wider risks around Iran
Iranian Economy Minister Ali Madanizadeh said Tehran would respond more offensively to the pressure. An oil tanker was reportedly hit by an unidentified projectile near the mouth of the Strait of Hormuz, while only two commercial vessels were reported to have completed the crossing on Monday.
The restricted shipping route has affected oil prices and the global economy. US Defense Secretary Pete Hegseth said military action in or around the strait remained possible, meaning the sanctions drive has not ruled out further force.
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