Scott Bessent Warns Global Partners to Sever Business Ties with Iran or Risk Financial Consequences
Treasury Secretary Scott Bessent issued a warning to the world to cease doing business with Iran, signaling a potential 'economic D-Day' for nations that fail to comply. The administration announced an expansion of sanctions intended to cut off Iran's economic lifeline, though it stopped short of the most punishing measures to avoid immediate retaliation from China. Bessent emphasized that no country is above the reach of US sanctions, noting that while China is the primary buyer of Iranian oil, Washington remains wary of Chinese retaliation regarding critical minerals. Experts suggest that while China has already reduced its Iranian crude imports, the new measures could further strain the administration's relationship with Beijing. The administration's move comes as global oil prices remain sensitive to the conflict. While India previously stopped importing Iranian oil to avoid sanctions, China continues to navigate the trade, often using intermediaries to settle payments in Chinese currency. The administration's strategy aims to level-set expectations with global partners ahead of upcoming talks between President Trump and Chinese leader Xi Jinping.