US Iran sanctions push underwhelms as China keeps buying 90% of oil

  • Scott Bessent threatened economic action against Iran and its trading partners.
  • China buys 90% of Iran’s oil despite Washington’s pressure.
  • Iran-linked banking and flight connections continued during the week.

Treasury Secretary Scott Bessent opened the week promising an "economic onslaught" against Iran and its trading partners, but the response from countries connected to Tehran remained limited. China, which buys 90% of Iran’s oil, warned Washington rather than retreating, while Iranian bank branches stayed open in Dubai and commercial flights continued between Iran, Turkey and the United Arab Emirates. Flights to Thailand, Azerbaijan, Russia and China also continued. By week’s end, the US had announced plans to sanction UAE-based branches of Egypt’s Banque Misr, falling short of Bessent’s expectation of a major financial-institution sanction. Former US Treasury official Alex Zerden said the measures did not match the rhetoric or clarify how the campaign would achieve an economic or military victory. The effort faces a central dilemma: sanctions strong enough to pressure Iran would likely need to target China, risking retaliation and broader global economic damage. The US also acted unilaterally while seeking support from allies and pursuing what Bessent called "quiet diplomacy." Iran’s war with the US and Israel, launched by Trump alongside Israel in late February, has passed six months, while Iran has endured decades of sanctions and a recent full US Navy blockade of its ports. Turkey had received no formal US guidance on the restrictions, and Pakistan said it was not obliged to follow unilateral sanctions. Analysts said the campaign was unlikely to fully isolate Iran because too many participants have incentives to maintain trade.

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US Iran sanctions push underwhelms as China keeps buying 90% of oil - CoinPost Terminal