Iran vows retaliation as US expands sanctions, spares China

Iran vowed retaliation after the US expanded sanctions on Monday, threatening to cut Tehran's economic lifeline, while Washington avoided naming China among targeted nations. Treasury Secretary Scott Bessent said traders risked exclusion from the dollar-based financial system. The US sanctioned 60 individuals, entities and vessels but omitted Chinese financial institutions suspected of facilitating Iran's oil trade. Bessent declined to identify targeted countries, saying he wanted to give them time to comply, and experts noted wariness of Chinese retaliation ahead of Trump-Xi talks. Iran's economy minister said Tehran was fully prepared, warning of attacks on US interests and energy chokepoints. The war, which began with US-Israeli strikes on Iran nearly six months ago, has killed thousands, and oil prices steadied Tuesday after falling over $2 a barrel.