US Iran sanctions are expanding once again, with China vowing to safeguard its own economic interests after Washington unveiled a sweeping new plan to punish Iran and any nation doing business with it, Beijing included. The move signals one of the toughest phases yet in Washington’s long-running campaign to cut off funding to Tehran.
China’s foreign ministry spokesman Lin Jian responded sharply, branding the new measures illegitimate and insisting Beijing would defend its own position by whatever means necessary. He described the American action as “illegal unilateral sanctions” and said China was prepared to take “all necessary measures” to protect its rights, signalling that Beijing has no intention of backing away from its trade relationship with Tehran.
The dispute follows an announcement from US Treasury Secretary Scott Bessent on Monday, who confirmed that any country maintaining financial ties with Iran now risks being isolated from the international financial system. His warning marks a significant escalation in Washington’s broader effort to strangle Iran’s economy, and it places the latest wave of US Iran sanctions among the most far-reaching yet.
Bessent did not mince words when describing the scale of the new package, calling it “the single greatest financial offensive ever” launched against Iran. He cautioned that banks and businesses continuing to operate with the country would be swept into that isolation themselves unless they moved quickly to sever their ties.
China remains the world’s largest buyer of Iranian crude oil, even though that trade has slowed considerably under the existing US blockade of Iran’s ports. That continued reliance on Iranian energy supplies puts Beijing squarely in the path of the newly expanded US Iran sanctions, despite China’s repeated insistence that its dealings with Tehran fall entirely within the bounds of international law.
Lin pushed back firmly against Washington’s framing of the relationship, stating plainly that “cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted.” The comment underscored Beijing’s determination to continue its energy trade with Tehran despite mounting external pressure.
When pressed on which countries would be targeted first, Bessent declined to single out any particular nation. He did, however, reveal that President Donald Trump intends to personally reach out to world leaders as part of the rollout, making what Bessent called “specific requests to cease their interactions with the regime.” That diplomatic push suggests the sanctions campaign will be paired with direct political pressure at the highest levels.
Asked specifically about the exposure of Chinese banks, Bessent did not hesitate to confirm that Beijing’s financial institutions could also fall within reach of the new rules. He said he wanted to make it clear that “no one was above the reach of US sanctions,” a statement aimed squarely at reassuring skeptics that even major economies like China would not be shielded from enforcement.
Treasury officials have framed the broader strategy as an attempt to choke off every remaining revenue stream available to Iran’s government. In remarks accompanying the announcement, Bessent said the goal was to “tighten the noose” around the financial channels that keep Iran’s economy running, language that captures the aggressive tone Washington has adopted in this latest phase.
With Beijing signalling it will not retreat and Washington promising tougher enforcement in the months ahead, tensions between the world’s two largest economies over Iran policy look set to deepen. Much will depend on whether Trump’s promised outreach to global leaders succeeds in winning broader international compliance, or whether the new US Iran sanctions instead trigger a fresh standoff between Washington and Beijing.
