US sanctions on Iran risk clash with China, its main oil buyer

Treasury Secretary Scott Bessent's threat of an "economic D-Day" against Iran risks a collision with China, Iran's main oil buyer, though skepticism remains over whether the US will follow through. China purchases about 90 percent of Iran's oil, making it central to any effective sanctions campaign. Bessent announced new sanctions Monday but deflected questions on targeting Chinese firms, preferring "quiet diplomacy" ahead of a planned Trump-Xi summit in September. Analysts warn that blacklisting Chinese companies could fracture the US-China trade truce and trigger retaliation, including export restrictions on critical minerals. The threat marks a shift from military escalation to economic pressure amid a conflict that has already disrupted global energy supplies and shipping through the Strait of Hormuz.