China holds the key to US sanctions on Iran

US Treasury Secretary Scott Bessent announced new sanctions against Iran on Monday, August 24, 2026, as part of Washington's plan to end the nearly six-month war through economic pressure. The "Economic Outcast" operation expands secondary sanctions on countries and entities trading with Iran, targeting technology, shipping, and digital assets. Analysts doubt the measures' effectiveness, noting China's role as Iran's key economic lifeline, with Chinese purchases funding about 45% of Iran's government budget. While 60 entities were sanctioned, including some Chinese private firms, major Chinese banks were spared. Experts say targeting these institutions is crucial, but could trigger broader US-China economic confrontation. Iran's finance minister stated the country was "fully prepared" for the new measures.