US sanctions plan puts China's Iran oil ties in crosshairs

The United States has unveiled a broad sanctions initiative designed to isolate Iran from the global financial system, according to Mettis Global. Treasury Secretary Scott Bessent presented the plan, called Operation Economic Outcast, at a briefing in Washington. Under the scheme, any country or firm that helps Tehran with oil sales, banking or shipping could face secondary penalties.

Rather than acting at once, Washington will first give individual nations deadlines to end flagged activities, Bessent said. Entities found laundering money for Iran would lose access to the dollar system once those deadlines pass. President Donald Trump has reportedly been phoning foreign leaders to press them to curb economic dealings with Tehran.

The plan has raised questions over whether China, Iran's largest trading partner and biggest oil buyer, could be affected. Bessent suggested Beijing was not immune, adding that any lender helping convert Iranian crude into regime income would face consequences wherever it is based. Washington's military operations against Tehran are nearing six months, while shipping through the Strait of Hormuz remains far below pre-war levels.