The US has put the world on notice to cease doing business with Iran, but experts say Washington is wary China could retaliate against any sanctions
Guardian staff and agenciesMon 24 Aug 2026 22.44 EDTLast modified on Tue 25 Aug 2026 21.31 EDTSharePrefer the Guardian on GoogleThe US has unveiled an expansion of sanctions that it says will cut off Iran’s economic lifeline but stopped short of the most punishing measures, instead putting the world on notice to cease doing business with the Islamic republic.
Treasury secretary Scott Bessent warned other countries would need to sever business ties with Iran or risk being forced out of the dollar-based financial system. He previously urged cooperation from China – the biggest buyer of Iranian oil for several years – although the US blockade of Iran’s ports, renewed in mid-July, has already cut much of the Iranian oil flows to China.
Experts say Washington is wary of Chinese retaliation for any sanctions on its banks ahead of expected talks next month between US president Donald Trump and Chinese leader Xi Jinping, with any curbs on China’s exports of critical minerals especially sensitive.
What do the new moves by the US mean for China and oil and how might Beijing respond?
With Reuters
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