The US administration announced an expansion of sanctions targeting Iran's oil industry, vowing to isolate any country that continues to trade with Tehran. The move is part of Washington's policy to pressure Iran over its nuclear program and regional activities. China, which imports roughly 90% of Iran's crude oil exports, swiftly responded, stating it will take necessary measures to protect its legitimate economic interests.
"China firmly opposes any unilateral sanctions that have no basis in international law," a Chinese Foreign Ministry spokesperson said. "We will safeguard our companies and citizens from illegal restrictions." The statement underscores the growing friction between the world's two largest economies, already strained by trade disputes and geopolitical rivalry.
The US Treasury Department said the new sanctions target entities involved in the shipment and financing of Iranian oil, including front companies and tanker networks. Washington has warned that third-country firms and individuals facilitating such trade could face secondary sanctions, effectively cutting them off from the US financial system.
Analysts say the escalation could further drive China to seek alternative payment mechanisms, such as yuan-denominated oil contracts or digital currency arrangements, to circumvent US sanctions. China has already been reducing its reliance on the dollar in international trade.
For Iran, the expanded sanctions threaten to deepen its economic isolation. Tehran has relied on Chinese purchases to offset the impact of previous US restrictions. Iranian officials have condemned the new measures as "economic terrorism" and called on China to strengthen bilateral cooperation.
The US contends that the sanctions are necessary to curb Iran's nuclear and missile programs, as well as its support for proxy groups in the Middle East. Critics argue that the policy has not changed Iran's behavior and instead harms ordinary Iranians.
The situation is likely to be a topic of discussion at upcoming UN meetings, where China may rally other nations against what it views as overreach by Washington.