U.S. Sanctions on Iran Face Limited Global Response, China Remains Active Oil Buyer

The United States announced new sanctions aimed at Iranian financial institutions, including the UAE-based branches of Egypt’s Banque Misr, but the measures have so far produced only modest reactions from other countries. China, which purchases about 90% of Iran’s oil, issued a warning to Washington and has not altered its trade stance.

Banking operations linked to Iran remain open in the Gulf. A staff member at a Bank Melli branch in Abu Dhabi confirmed that the office is still conducting business, and Iranian bank branches continue to function in Dubai. Commercial flights between Iran and Turkey, the United Arab Emirates, Thailand, Azerbaijan, Russia and China also persist, despite the UAE’s recent pledge to end all trade and financial transactions with Tehran.

Former Treasury official Alex Zerden said, "> As the war passes the six-month mark, the public actions taken by the Treasury Department this week do not match the hype," and added that the current sanctions strategy "does not provide a clearer theory of economic or military victory in this current campaign."

U.S. officials have reportedly sought support from allies, including the United Kingdom, and the Treasury secretary is expected to discuss the issue with finance ministers at an upcoming G20 meeting. Analysts note that any effective sanctions campaign would likely need to target China, a step that could trigger significant economic retaliation.

The United Arab Emirates described its decision to cut financial ties with Iran as a "sovereign decision reflecting its strategic assessment of the national interest and the requirements of regional security." Turkey and Pakistan have not reported immediate changes to their trade or transport links with Iran, and both countries indicated they await further guidance before implementing any new restrictions.