China warns of retaliation after U.S. threatens sanctions on trade with Iran
Beijing said it will take all necessary measures to protect its interests after the United States announced sanctions targeting entities dealing with Iran, while the U.S. cautioned against disrupting the global financial system.
China’s foreign ministry spokesperson Lin Jian told reporters that cooperation with Iran is conducted within international law and should not be interfered with, adding that Beijing "firmly opposes illegal unilateral sanctions" and will take "all necessary measures" to safeguard its rights and interests. The remarks came after U.S. Treasury Secretary Scott Bessent announced a new round of sanctions on 60 individuals, entities and vessels linked to Iran, but did not name any Chinese financial institutions. Bessent said the United States aims to cut off financial connections that support Tehran and warned that entities facilitating money laundering for Iran could be removed from the U.S. dollar system.
The United States has warned that continued trade with Iran could trigger secondary sanctions, though it stopped short of naming specific targets to avoid destabilising the global financial system. Analysts note the move raises the risk of Chinese retaliation, potentially through financial markets or restrictions on critical mineral exports, ahead of a planned summit between President Donald Trump and President Xi Jinping.
In related developments, an oil tanker was struck by an unidentified projectile near the Strait of Hormuz, prompting safety checks but no immediate environmental damage. Iran and Oman discussed joint management of the waterway, and a Pakistani delegation met Iranian officials to discuss reopening the strait. Oil prices fell about 4% after the sanctions announcement, though they remained above pre-war levels.
U.S. Defense Secretary Pete Hegseth said military options were not ruled out, while Treasury officials emphasized the economic focus of the campaign. Experts warned that intensified sanctions may not quickly achieve U.S. objectives in the region.