US Treasury Secretary warns of sanctions on nations buying Iranian oil, targeting China
Treasury Secretary Scott Bessent announced a forthcoming crackdown on countries importing Iranian crude, signaling that China, which accounts for most of Iran's oil exports, could face new measures.
U.S. Treasury Secretary Scott Bessent said on Monday that the United States will launch an "economic D-Day" against countries that continue to purchase oil from Iran, a move seen as aimed primarily at China.
Bessent did not name China directly, but added, "We find that the best way to engage with countries is through quiet diplomacy, and we are level-setting with every country to tell them our expectations. We know who they are. They know who they are."
According to the U.S.-China Economic and Security Review Commission, Chinese buyers account for roughly 90 percent of Iran’s exported oil, generating tens of billions of dollars in revenue for Tehran’s budget and military. Recent analyses estimate that Iran shipped between $3.9 billion and $4.2 billion worth of oil in September 2025.
China has already cut its Iranian crude imports, falling from an average of about 1.4 million barrels per day before the conflict to roughly 700,000 barrels per day in recent weeks, as refinery runs slowed and on-shore inventories were drawn down, said Emma Li of Vortexa. Tianyue Hu of Rystad Intelligence noted that a complete halt would have limited immediate impact on China’s oil security because imports have already declined and China holds sizable crude stocks.
Chinese Foreign Ministry spokesman Lin Jian responded that sanctions and pressure “do not help in resolving issues” and would only lead to escalation.
Analysts caution that the lack of transparent data on oil flows through the Strait of Hormuz complicates assessments. While U.S. Energy Secretary Chris Wright said the strait remains open, Iranian officials dispute that claim, and ship-tracking firm Kpler reported that shadow tanker traffic now makes up about half of the strait’s recent oil movements.
Higher global oil prices have already affected U.S. consumers, with the national average gasoline price rising to $4.10 per gallon, up from $3.15 a year earlier, according to the AAA.
Bessent emphasized that “no one is above the reach of US sanctions,” adding that the United States does not have “infinite patience,” though he did not specify timelines for any forthcoming actions. Xi Jinping is slated to visit the United States next month.