- Lead. US Treasury Secretary Scott Bessent announced on Thursday that Washington is preparing what he described as “the toughest sanctions in history” against Iran, aiming to collapse its government economically.
- Fact. China absorbs more than 80 percent of Iran’s seaborne oil exports; Bessent warned that any country providing Iran a financial lifeline would face consequences.
- Stake. A full sanctions lockdown could push oil prices higher and widen the standoff with Beijing at a moment when Iran-Oman talks on Hormuz passage remain unresolved.
Bessent’s Announcement
US Treasury Secretary Scott Bessent declared on Thursday that Washington will impose what he called “the greatest coordinated economic isolation in the history of the world” on Iran. “We have the blockade on Iran, and we are going to have the toughest sanctions in history,” Bessent told CNBC on August 21. “It is going to work in Iran and we are going to collapse this regime.”
Bessent said a formal press conference would follow to detail the specific measures. He urged China and other governments to co-operate, warning that any country offering Iran an economic lifeline would face its own consequences. “You are either with us or against us,” the Treasury Secretary said, reinforcing language President Donald Trump used earlier in the week when he threatened economic retaliation against nations providing Iran with revenue or trade access.
China’s Exposure
China is the primary destination for Iranian crude, accounting for more than 80 percent of Iran’s seaborne oil exports in 2025, according to analytics firm Kpler. Beijing has consistently declined to recognise US secondary sanctions as binding on its companies, and the two governments have clashed repeatedly over Washington’s attempts to apply extraterritorial penalties to Chinese entities trading with sanctioned parties.
A broad secondary-sanctions package — one that penalises foreign banks and companies handling Iranian oil payments — would put Beijing in a direct confrontation with the US financial system. Chinese state-owned energy importers have historically proved more resistant to US pressure than privately held firms. Iran’s Foreign Ministry condemned Bessent’s remarks as “illegal and inhumane,” according to the Al-Monitor report.
Six Months of Conflict
The US and Israel launched military operations against Iran in late February 2026. A ceasefire signed in April expired without a permanent settlement, and Iran has since described its posture as fully offensive. The Strait of Hormuz — through which roughly 17 million barrels of oil pass daily — has remained a flashpoint, with Tehran conditioning co-operation on sanctions relief that Washington has refused to grant.
Analysts note that the effectiveness of any new sanctions package will depend on whether European allies and Japan join enforcement, or whether Iran can sustain sufficient oil revenue through Chinese channels to outlast a prolonged economic campaign. Markets reacted cautiously to Thursday’s announcement, with Brent crude holding near recent levels as traders weighed the potential supply disruption against the possibility that Beijing absorbs any new pressure without altering its purchasing patterns.