China Warns of Retaliation Against Amended U.S. Sanctions on Iran

On Tuesday, the Chinese Ministry of Foreign Affairs announced that it would take all necessary measures to protect its rights and interests if the United States significantly expands economic sanctions related to Iran. This threat comes in the wake of U.S. Treasury Secretary Scott Bessent's announcement of Operation Economic Outcast (Operation Pária Econômico), aimed at choking off Iran’s economy by imposing new restrictions on more than 60 entities, individuals, and vessels suspected of aiding the country's nuclear program. So far, sanctions have primarily targeted Chinese companies in mainland China and Hong Kong, with major banks still largely unscathed. China is currently the world's largest buyer of Iranian oil, with private smaller refineries continuing to import and process the product, despite some already being sanctioned by Washington this year. This escalation of sanctions has significant implications for global markets given China’s status as a fast-growing large economy and a major consumer of oil, particularly from Iran.