The United States is stepping up pressure on allies and China to reduce economic ties with Iran, as President Donald Trump shifts toward an aggressive sanctions campaign against Tehran.
Treasury Secretary Scott Bessent said Washington is preparing what he described as the “toughest sanctions in history,” targeting Iran’s oil revenues and financial networks.
China is particularly important because it buys more than 80% of Iran’s shipped oil, providing Tehran with a major source of revenue. Beijing has rejected Washington’s sanctions strategy and continues to call for diplomacy instead.
The US is also warning other countries and companies that continuing significant business with Iran could bring economic consequences, raising the risk of broader trade tensions.
Investor takeaway: The biggest market risk remains oil. If Washington succeeds in significantly reducing Iranian exports, global supply could tighten and keep oil prices volatile, especially while uncertainty around the Strait of Hormuz continues.
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