US Iran sanctions China defiance

The United States, led by Treasury Secretary Scott Bessent, has escalated economic pressure on Iran and its trading partners, threatening an 'economic onslaught' and sanctioning dozens of Chinese entities. Washington has warned it may target a major Chinese financial institution for dealings with Tehran. China, under Xi Jinping, has responded defiantly, stating its relationship with Iran 'should not be disrupted or undermined' and vowing to take 'all necessary measures' to safeguard its interests. Beijing remains Iran's largest oil buyer, purchasing about 90% of its crude, and has shown little willingness to cooperate with US sanctions without significant concessions. The standoff comes ahead of a planned summit between Xi Jinping and Donald Trump in late September, adding to bilateral tensions. The US has also sanctioned UAE-based branches of Egypt's Banque Misr, while Iran's Bank Melli Iran branches remain open in the UAE. Many countries, including Turkey and Pakistan, have shown reluctance to fully enforce the sanctions, and the global response has been largely underwhelming. The US naval blockade of Iran has reduced oil exports but not halted them entirely, with China still receiving crude via overland routes. Analysts note that a truly effective sanctions campaign would require China's cooperation, which appears unlikely given Beijing's strategic interests and its leverage over rare earth exports.