Global bond markets have seen a sharp liquidity freeze and wider credit spreads as the United States prepares what officials describe as its greatest financial offensive against Iran, a package of sanctions and financial measures aimed at isolating Tehran from global banking and trade. The plan is expected to target Iranian oil exports, access to foreign exchange reserves, and international transactions, building on maximum economic pressure that intensified after the 2018 U.S. withdrawal from the Joint Comprehensive Plan of Action. Investors have shifted into safe-haven government debt such as U.S. Treasuries and German Bunds while corporate and emerging-market bonds with Middle East exposure have grown more volatile. China’s foreign ministry said on Monday, Aug. 24, that Beijing would monitor developments and take necessary steps to protect its rights, with spokesperson Lin Jian urging restraint as Treasury Secretary Scott Bessent prepared a Washington announcement and pressed China to cooperate. Analysts say lasting market stress will hinge on whether oil supplies are disrupted, how China and the European Union respond, and whether secondary measures reach non-U.S. firms that trade with Iran.