The United States announced a sweeping package of economic sanctions targeting Iran’s remaining revenue streams, led by U.S. Treasury Secretary Scott Bessent, who branded the move as an “economic D-Day” for Tehran. According to Kompas and investigasiindonesia.com, the new measures aim to choke off all potential income for the Iranian government, while Beijing immediately condemned the unilateral restrictions as illegal.
U.S. Treasury Targets Iran’s Remaining Revenue Streams
U.S. Treasury Secretary Scott Bessent outlined the aggressive economic package on Monday, warning that any entity maintaining economic ties with Iran will face the full force of Washington’s sanctions. According to reporting from Kompas and investigasiindonesia.com, the strategy specifically bypasses major Chinese state banks in its initial wave. Instead, Washington is focusing on roughly 60 entities, individuals, and vessels located in mainland China and Hong Kong. These targets are accused by U.S. officials of supporting Iran’s nuclear and missile procurement, cyber operations, and the oil trade that provides Tehran’s primary income.
China Condemns Unilateral Sanctions and Defends Trade Ties
China fiercely rejected the U.S. measures, labeling them illegal and a violation of international norms. On Tuesday, Chinese Foreign Ministry spokesperson Lin Jian stated that cooperation between Beijing and Tehran operates strictly within international law and should not be interfered with. According to reporting curated from regional news sources, China purchases up to 90 percent of Iran’s oil exports, often utilizing independent refineries—known as teapot refineries—that rely on intermediaries to bypass Western restrictions. In May, China’s Ministry of Commerce ordered domestic firms to ignore U.S. restrictions targeting these facilities.
Did you know? Independent Chinese refineries, or “teapot refineries,” process the majority of Iran’s oil exports by frequently utilizing intermediaries and altering shipping origins to evade U.S. tracking systems.
Geopolitical Stakes Ahead of Trump-Xi Summit
William Yang, a senior East Asia analyst at the International Crisis Group, noted that neither Washington nor Beijing is likely to take drastic actions against Iran that might jeopardize the upcoming summit. However, political scientists like Gu Xuewu at the University of Bonn suggest that Beijing will not surrender to U.S. pressure to sever economic ties with Tehran, raising the prospect of retaliatory measures if Washington targets major Chinese financial institutions.
Frequently Asked Questions
What is the goal of the new U.S. sanctions against Iran?
According to U.S. Treasury officials, the measures aim to close off all remaining revenue streams for Tehran, targeting the country’s oil trade, shipping networks, and financial channels.
How is China reacting to the U.S. financial pressure?
Beijing has condemned the sanctions as illegal and maintained its pragmatic trade relationship with Iran, stating that economic cooperation must be protected under international law.
/data/photo/2026/05/19/6a0bbcb947fd7.jpg "Photo: kompas.com")
Are major Chinese banks currently facing direct U.S. sanctions?
Initial enforcement has focused on approximately 60 entities, individuals, and vessels in mainland China and Hong Kong, rather than major state-owned Chinese banks, though U.S. officials maintain that no entity is entirely immune.
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