- US Treasury Secretary Scott Bessent announced on Thursday that Washington will impose "the toughest sanctions in history" on Iran and urged China to cooperate.
- China responded that sanctions will not help resolve the issue, calling for political and diplomatic means instead.
- Oil prices rose to more than three-week highs on Thursday following the announcement of US sanctions aimed at Iran.
- The US imposed a naval blockade on Iran in April, which was paused for a month in mid-June.
- President Donald Trump warned on Wednesday of economic consequences for any country that provides a lifeline to Iran, emphasizing the US's commitment to economic pressure.
- Bessent is scheduled to hold a press conference on Monday to discuss the details of the sanctions.
U.S. Treasury Secretary Scott Bessent declared on Thursday that the U.S. will implement "the toughest sanctions in history" against Iran, aiming to pressure the regime amid ongoing military conflict. Bessent emphasized the sanctions as part of a broader strategy, stating, "It is a one-two punch. We have the blockade (on Iran), and we are going to have the toughest sanctions in history."6
The sanctions come as President Donald Trump warned of severe economic repercussions for any nation aiding Iran, asserting, "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences." In response, a spokesperson for China's embassy in Washington criticized the sanctions, claiming, "Regarding the Iran issue, sanctions and pressure do not help resolve the problem." China, which imports over 80% of Iran's oil, is urged by Bessent to align with U.S. efforts, as he noted, "Keep in mind that the Chinese get 50% (of their) energy from inside the Gulf."12
Despite the sanctions, oil prices have surged to a three-week high, with Bessent expressing confusion over the market's reaction, stating, "I'm not sure why oil has popped up on this." He suggested that the economic pressure could prevent a military escalation, asserting, "If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart." Bessent plans to provide further details at a press conference on Monday.3
“China, which buys over 80% of Iran's shipped oil, dismissed sanctions as unhelpful, urging political and diplomatic resolution. Bessent also suggested the economic pressure could reduce the need for large-scale military action, while oil markets reacted with a three-week high.”
