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U.S. Announces Wide Sanctions on Iran as China Warns of Retaliation

The package threatens secondary penalties that could weaken enforcement if Beijing refuses to cooperate, raising the risk of further strain on oil flows through the Strait of Hormuz.

Overview

  • The U.S. Treasury unveiled Operation Paria Económico on Monday, sanctioning about 60 people, companies and vessels across sectors such as digital assets, gold, aviation and maritime trade while warning of secondary sanctions for trading partners.
  • Washington deliberately excluded major Chinese banks from the initial list to limit bilateral escalation ahead of the upcoming TrumpXi summit.
  • China’s foreign ministry publicly pledged to take all necessary measures if U.S. sanctions are expanded to target Chinese firms, and Beijing backs opaque private import paths and a growing anti‑sanctions toolkit that complicate enforcement.
  • Iran has vowed reprisals including military and economic responses and is already showing domestic strain, with long fuel lines and consumer fears of shortages and price rises.
  • Oman, Pakistan and Qatar are negotiating a phased plan to restore navigation and remove mines in the Strait of Hormuz, a step markets cited when oil prices fell after reports of possible diplomatic progress.