Treasury Secretary Scott Bessent began the week vowing an “economic onslaught” against Iran and its trading partners in a fresh bid to end the war. By the week’s end, countries with ties to Tehran had so far shrugged off the threat and analysts were left underwhelmed by the US actions.

China, which buys 90% of Iran’s oil, issued a defiant warning to Washington rather than back down. Iranian bank branches remained open in Dubai. At one Bank Melli branch in Abu Dhabi, staff were busy typing away and one employee explained that they were still open for business.

As mentioned previously

Commercial flights also continued between Iran and Turkey as well as Iran and the United Arab Emirates, which had promised last week to sever all trade and financial transactions with Tehran. Routes flying to Thailand and Azerbaijan, as well as multiple destinations in both Russia and China, remained unaffected.

As the week came to a close, the US announced plans to sanction the UAE-based branches of Egypt’s Banque Misr. That fell well below expectations after Bessent’s warning that the world would see “a major announcement of a financial institution being sanctioned by the end of this week.”

“As the war passes the six-month mark, the public actions taken by the Treasury Department this week do not match the hype,” said Alex Zerden, a former US Treasury official and founder of Capitol Peak Strategies.
“Operation Economic Outcast is a continuation of 47 years of restrictive economic measures against Iran but does not provide a clearer theory of economic or military victory in this current campaign,” Zerden said.
The Treasury Department didn’t respond to a request for comment on Friday.
Bessent’s threats — and the collective global shrug so far — underscore the Trump administration’s main conundrum as it seeks to sanction Iran into meeting its demands.

Any effective sanctions campaign would need to hit China, a move that risks sparking retaliation and potentially massive global economic fallout. Anything less would add to Iran’s economic pain but not enough to budge its strategic calculus.

US credibility is also at stake. Bessent repeatedly compared the US response to the historic 1944 D-Day landings in Normandy, France — a coordinated land and air invasion aimed at toppling the Nazi regime. But the US acted unilaterally with its latest move, pressuring other countries rather than working with them, and Bessent openly acknowledged that going too fast and too hard risked tanking the global financial system.

Further muddying the picture, Bessent also said the US was engaged in “quiet diplomacy” to get its way. US officials turned to counterparts in the UK asking for a statement of support, according to people familiar with the matter.
The Treasury chief is also expected to speak with fellow finance ministers this weekend at a Group of 20 gathering in Asheville, North Carolina. One of the biggest questions attendees will likely have for Bessent is whether the US is willing to hit a Chinese financial institution, according to Josh Lipsky, chair of international economics at the Atlantic Council.

The UAE, a key US strategic ally, said earlier this month it would cut financial ties with Iran. But some flight and banking links with Tehran appear to continue, and the UAE’s government described its move in a statement to Bloomberg News as a “sovereign decision reflecting its strategic assessment of the national interest and the requirements of regional security.”

Asked on Thursday which countries the US had approached so far, President Donald Trump responded, “about Iran? There’s not a lot to speak to. We don’t want to speak to them. We’re not looking to meet or anything.”

“You can’t unleash meaningful economic warfare on Iran while ignoring the one country that absorbs 90% of its oil exports,” said Leland Miller, the CEO of China Beige Book data platform and a commissioner on the US-China Economic and Security Review Commission, which advises the US Congress.

In the meantime, the US appears no closer to ending the war that Trump launched alongside Israel in late February. Iran has endured decades of harsh sanctions and has recently faced a full US Navy blockade of its ports that has dried up oil exports.

Officials in nations that have traditionally had strong economic links with Iran have not heard much from the US this week. Turkey has not received any formal guidance from the US on the restrictions and how they apply to Iran, according to people familiar with the matter. But they believe they’ll have adequate time to discuss and implement requirements once they are informed, they said.
The response from Pakistan indicated that even countries with close ties to the US are feeling little immediate pressure from the new campaign, at least so far.

While Islamabad has won praise from Trump for its mediation efforts to end the war, there was no indication that its overland trade with the Islamic Republic — such as in rice and mangoes — had slowed down. Pakistan’s Foreign Ministry spokesman Tahir Andrabi told reporters this week that the country “is not obliged” to respond to unilateral sanctions.
“The idea Iran can be knocked out with this is risible — it’s not going to move the needle,” said Stephen Fallon, principal adviser at DBM Consulting. “It’s not possible to get a completely airtight seal on this thing. There are too many actors, and it’s too rewarding for the people involved.”

Beijing has warned the US that it will retaliate if Chinese companies are included in any significant expansion of the Trump administration’s new secondary sanctions relating to Iran.

The measures unveiled on Monday by US Treasury secretary Scott Bessent targeted companies based in Hong Kong and mainland China but stopped short of listing large Chinese financial institutions.

Any serious increase in US sanctions on China, which buys 90 per cent of Iran’s oil, would risk exploding the relationship only a month before presidents Donald Trump and Xi Jinping are scheduled to meet in Washington.

The summit is seen as crucial to the world economy, with the leaders expected to discuss extending a one-year truce in their trade war that they agreed in October and which was cemented by a cordial visit to Beijing by Trump in May.

“China will take all necessary measures to firmly safeguard its rights and interests,” a Chinese foreign ministry spokesperson said on Tuesday in response to questions about US secondary sanctions on Iran.

“China has made clear on many occasions its firm opposition to illicit unilateral sanctions that have no basis in international law or the authorisation of the UN Security Council,” they said.

“The pressing task is to facilitate de-escalation of the situation and return to dialogue and negotiation as soon as possible,” they added.

While China’s large state-owned refiners largely comply with sanctions on Iranian crude, Beijing allows private sector refiners known as “teapots” to import and process oil from the country.

The US imposed sanctions on some of these refiners earlier this year but China ordered domestic companies not to comply.

China has set up an increasingly strident anti-sanctions regime that includes countermeasures against foreign individuals and organisations that assist with foreign restrictions on Chinese companies and supply chains.

Any attempt by the US to aggressively expand a secondary sanctions regime on Iran to Chinese companies would risk retaliation from Beijing, which last year showed that it could bring American manufacturing to a standstill through its control of critical minerals essential to high-tech production.

“We have to wait and see whether this is just bluffing or [the US is] seriously thinking about putting secondary sanctions on China,” said Wang Dong, a senior scholar at Peking University.

“If they do, then of course China will absolutely defend its national interest . . . we already did that during round one last year,” he added.

He said Washington was trying to “shift responsibility on to others and blame China for its own failure”.

But Zhu Feng, an international relations expert at Nanjing University, said that behind the scenes, China was deeply interested in encouraging the warring parties in the US-Iran conflict to find a solution.

He noted that the continued restrictions on shipping through the crucial Strait of Hormuz due to the conflict are straining the entire global economy.

“From a Chinese perspective, we don’t want to get involved in a US-Iranian fight,” he said. “On the other hand, we are also very highly aware that if the Strait of Hormuz dilemma continues, it will also be more dangerous for China. China’s main oil imports come from the Middle East, not from Iran but from Saudi Arabia and Iraq.”

In recent days, Xi has met King Abdullah II of Jordan while foreign minister Wang Yi has met his Kuwaiti counterpart, with Iran and the war in Gaza discussed in both meetings.

“So China’s message to Tehran is very clear — we hope the peace talks will continue,” said Zhu.

Well, we’d all like to see peace talks. With the US and Israel actually sticking to their agreements. Before the global economy is completely sunk

Once enacted, the act would impose primary and secondary sanctions on Russia, targeting Russian officials, banks, financial institutions and other entities.

The US Senate has passed legislation that would impose new sanctions on Russia, sending it to the House of Representatives.

By a vote of 86-11, the upper chamber passed H.R. 5334, the legislative vehicle for the Lindsey O. Graham Sanctioning Russia Act of 2026.

The measure cleared the Senate on Friday with the support of more than the 60 votes required for passage.

Eleven senators voted against the bill: Democrats Lisa Blunt Rochester, Maggie Hassan, Mazie Hirono, Ed Markey, Jon Ossoff, Alex Padilla, Bernie Sanders, Elizabeth Warren, Peter Welch and Ron Wyden, along with Republican Rand Paul.

The three senators who did not vote are Republicans Marsha Blackburn, Cynthia Lummis and Mitch McConnell.

The measure was a key legislative priority of Senator Lindsey Graham, who died after a brief illness last month.

Several senators met Ukrainian President Volodymyr Zelenskyy last month during his visit to the US for Graham’s funeral.

If enacted, the act would impose primary and secondary sanctions against Russia and actors supporting the war in Ukraine.

The sanctions target Russian officials, oligarchs, their family members, foreign persons and Russian banks and financial institutions.

The legislation allows the president to impose targeted tariffs on imported goods from countries that buy the vast majority of Russian oil or gas, and enable Russian sanctions evasion. (China and India will be targets)

It also includes a provision to prevent a lapse in sanction authority that restricts funding for Iran’s energy and weapons sectors.

“This landmark legislation is a powerful demonstration of America’s global leadership. I extend my sincere gratitude to the members of the US Senate for their leadership, their principled bipartisan support, and their enduring solidarity with Ukraine. Together, we are bringing a lasting peace closer,” he said on the US social media company X.

EU toadies sanction too

EU approves new sanctions on Russia in response to massive strikes on Ukraine

Background:

• On 23 July, the Council of the European Union formally adopted a new package of sanctions against Russia, describing it as a measure that “deals a powerful blow to Russia’s energy sector, financial services and cryptocurrencies.”
• The package was approved after weeks of delays caused by objections from several member states for different reasons, with Greece being the last country to lift its objections.
• Following its adoption, it emerged that the EU is reviewing its broader approach to sanctions against Russia.

First an oped from Maritime Executive;

The sanctions on Russia have transformed crude oil and refined product flows. Before the war, the vast majority of Russian seaborne crude went directly to European Union ports. Today, that flow has essentially dropped to zero, rerouting heavily toward Asia. China and India, who are not sanctioning Russia, now consume more than 80% of Russia's seaborne crude oil exports. This has led to a massive boost in long-haul Suezmax and Aframax employment. One would typically use VLCCs for these long-haul trips to Asia, but Russia does not have access to VLCC-capable export terminals. This has transformed Russia’s oil flows from using regional pipelines and short-haul voyages to long-haul trips on medium-sized, suboptimal tonnage.

The introduction and enforcement of price caps and trade bans has reshaped fleet ownership, vessel values, and maritime safety standards globally. The sanctions against Russia have also fractured the global oil tanker industry, splitting the maritime shipping world into two distinct, parallel markets: the regulated “mainstream” market and a booming, opaque “shadow” market.

Surviving The Sanctions

Despite the sanctions, Russian crude oil exports have largely been maintained. As a matter of fact, they have been rising in 2026 to date.

Russian crude oil exports are rising! Read the rest at the above link.

Finally;

Turkish cargo ship hit in suspected Ukrainian attack near Russian port (VIDEOS)

The captain said the Nadezhda, which reportedly carried fruit and vegetables, was struck by Kiev’s drones

A Turkish-operated cargo ship was hit in an apparent Ukrainian drone attack off the Russian Black Sea port of Novorossiysk late on Monday.

The Nadezhda had a crew of 22, including 13 Turkish citizens, according to the DGM. Turkish media reported that the vessel was operated by Samsun-based Kalyoncu Shipping and had been carrying fruit and vegetables from Türkiye to Russia.

Lavrov had mentioned this was already happening and I’d covered it in this previous post

Russia hopes Türkiye will send a strong signal to Ukraine following attacks on Turkish vessels in the Black Sea, Russian Foreign Minister Sergey Lavrov said, APA’s Moscow bureau reports.

More interesting reads below:

Russia warns coalition of willing forces in Ukraine would be ‘legitimate military targets’

Russia on Tuesday warned that the military contingents from the so-called “coalition of the willing” in Ukraine would be “legitimate military targets” if stationed there.

Commenting on remarks by French President Emmanuel Macron about plans for deploying forces in Ukraine at a press briefing in Moscow, Foreign Ministry spokeswoman Maria Zakharova called this possible move “unacceptable.”

“In this context, we would like to once again emphasize that the deployment in Ukraine of any military contingents from the so-called coalition of the willing is unacceptable for our country,” she stressed.

Zakharova added: “This would, I repeat, de facto amount to foreign intervention and an increase in threats to Russia’s security. Such units will be regarded by us as legitimate military targets.”

The official also said that Western arms deliveries remained one of the main obstacles to a settlement of the conflict in Ukraine.

She referred to previous remarks by former EU foreign policy chief Josep Borrell, who said the conflict would have ended “within days, weeks, or a month” if Europe stopped arms supplies to Ukraine.

“If the Western Organization for Security and Cooperation in Europe participating states genuinely want to end the confrontation, which is draining the resources of their own taxpayers, they simply need to stop supplying weapons to the Kyiv regime,” she said.

The spokeswoman urged Europe to “stop hiding behind talk of peace and openly admit that they want only one thing—aggression.”

Zakharova also said that Western-supplied weapons had been used against Russian civilians and warned that some of the arms had entered illicit circulation.

“Such cases have already been documented,” she said, adding that weapons had allegedly surfaced not only in Europe but also in Latin America, Africa and the Middle East.

Separately, Zakharova criticized military exercises conducted by Poland near the borders with Russia and Belarus, describing them as an attempt to “flex its muscles.”

She said the drills, held on July 13-14, reflected what she called Warsaw’s desire to strengthen its position as “the leader of Eastern Europe” and “the main bastion of NATO’s eastern flank.”

“The intensification of Poland’s military activity near the borders of Russia and Belarus once again demonstrates the complete irresponsibility of the Polish elite,” Zakharova said.

Russia and China are set to meet in Ankara

Russian Ambassador to Ankara Sergey Vershinin, will host an intriguing event on 16 July. In fact, it is a joint initiative with China’s Ambassador to Ankara Jiang Xuebin , though the venue has been set as the Russian Embassy. A conference will mark the 25th anniversary of the Treaty of Good-Neighborliness, Friendship and Cooperation between Russia and China.

The same program is being held in capitals around the world. In Australia, for example, the venue is the Chinese Embassy in Canberra. In some countries the conferences are hosted by Russian embassies, in others by Chinese missions.

Speaking at the conference held at the Russian Embassy in Beijing, Chinese Vice Foreign Minister Liu Bin said that Russia and China regard each other as “foreign policy priorities” and “support one another on core interests.”

Ukraine has been attacking Turkish vessels in the Sea of Azov- Interesting

Lavrov: Russia expects Türkiye to send strong signal to Ukraine over attacks on Turkish vessels

Russia hopes Türkiye will send a strong signal to Ukraine following attacks on Turkish vessels in the Black Sea, Russian Foreign Minister Sergey Lavrov said, APA’s Moscow bureau reports.
avrov described Ukraine’s attacks on civilian vessels in the Sea of Azov as terrorism.

The Russian foreign minister added that such actions could not even be described as piracy.

“Because pirates seize cargo, they do not destroy it,” Lavrov said.

He said Moscow expects Ankara to publicly assess Kyiv’s actions.

FETÖ members enjoy freedom in US after plot against Türkiye

Of course they do! At my censored blog there are many, many articles covering the US backed coup attempt on the Turkish leader.

Russia calls for immediate halt to military hostilities in Persian gulf/Strait of Hormuz

New US Sanctions Target Russian Oil Exports and Shadow Fleet

New U.S. Sanctions Bill Targets Russia’s Oil Exports and Shadow Fleet
By RFE/RL staff – Jul 15, 2026, 9:00 AM CDT

The revised bill replaces the earlier proposed 500% tariff with tariffs of up to 100% aimed primarily at the largest buyers of Russian oil and gas.
The legislation would impose broad sanctions on Russian officials, financial institutions, energy projects, oligarchs, and the shadow fleet used to evade existing sanctions.
Although the proposal enjoys strong bipartisan Senate support, it faces criticism in the House over the amount of tariff authority granted to the president.

Chinese FM rejects US unilateral sanctions targeting Russian energy buyers

Chinese Foreign Ministry (FM) spokesperson Lin Jian on Wednesday rejected a new US sanctions bill targeting countries that continue energy trade with Russia, saying China firmly opposes “illegal unilateral sanctions” that lack a basis in international law or authorization from the UN Security Council.

China will take all necessary measures to firmly safeguard the legitimate rights and interests of its enterprises and citizens, Lin said, warning that applying double standards and resorting to coercion and pressure will ultimately “end up shooting oneself in the foot.”

US issues new non-proliferation sanctions against those tied with Iran and Russia

The United States has imposed new non-proliferation sanctions targeting individuals and entities in Russia and Iran, according to a post on the US Treasury Department’s website, The Times of Israel reports.

The Iran war and Hormuz disruption have turbocharged U.S. LNG exports, giving Washington a major short-term energy dominance boost as Asia and Europe scramble for alternative supply.
China, however, enters the crisis from a position of greater energy resilience after years of investment in domestic production.
The U.S. still has a major long-term opportunity, but sustaining dominance will require turning crisis-driven demand into lasting partnerships

*Oil Prices fall on hope for US Iran Ceasefire

We wonder why it is we are unhealthy? Our fertilizer is derived from gas (Thinking about Gary, here)

The war in Iran has done more than disrupt global hydrocarbon markets—it has quietly set off a crisis in the fertilizers derived from natural gas that feed the world.

The virtual standstill in marine traffic through the Strait of Hormuz has also taken 50 percent of the world’s traded sulfur and 36 percent of the world’s traded urea off the market, all essential components of fertilizers that sustain global food production. The result is a cascading supply crisis—spanning natural gas, ammonia, urea, sulfur, and phosphates—that threatens food security worldwide and that the United States has a limited but real window to address.

*Gold recovers, for now

*Ukraine attacks– Zaporizhzhia Power Plant

They said they didn’t but they did. It’s always been them attacking the plant

IAEA issues Ukraine nuclear plant warning after Russia alleges Zaporizhzhia attack

“The IAEA has been informed by the ZNPP that a drone today struck a turbine building at the site, reportedly causing a hole in its wall,” the agency said in its statement.

IAEA Director General Rafael Grossi, the statement added, “expresses serious concern about the reported incident which would endanger both the seven indispensable pillars for ensuring nuclear safety during the conflict as well as the five concrete principles to protect the ZNPP, which clearly state that ‘there should be no attack of any kind from or against’ the plant.”

*Ukraine strikes Russia

Ukrainian drones struck targets across several Russian regions overnight, including an oil pipeline pumping station, a refinery and a fuel depot, Russian and Ukrainian authorities said on Sunday, in an escalating campaign of strikes against Russian energy infrastructure. Ukraine’s General Staff said it had struck the Saratov oil refinery on the Volga river, causing a large fire. Saratov regional governor Roman Busargin said on Telegram that “civil infrastructure” had been damaged in the strike, but gave no more details.

Here are some takeaways from Trump’s trip to China, the first by a U.S. president since 2017.

NO BREAKTHROUGH ON IRAN

Trump downplayed the need for China’s help with Iran ahead of the trip, even as his aides said Beijing – a major buyer of Iranian oil – could play an influential role in brokering a path to ending a conflict that has created the biggest crisis of Trump’s presidency.

The U.S.-Israeli war with Iran has crowded out other policy priorities, raised energy costs and weighed on Republican prospects ahead of November’s midterm elections.

Trump ended his trip without any obvious sign of securing China's help

Trump suggested he could ease sanctions on Chinese refineries that do business with Iran, (Iran was not interested) potentially rolling back one of the few concrete steps the U.S. has taken to punish China for its support of Iran.

“We feel very similar,” Trump said on Friday as he met with Xi in a secretive Chinese Communist Party compound in central Beijing. “We want that to end. We don’t want them to have a nuclear weapon. We want the straits open.”

Xi said nothing. About the same time, the country’s foreign ministry issued a statement that sounded a different note: “This conflict, which should never have happened, has no reason to continue,” the ministry wrote, adding that it wants to help the parties find peace.

MORE PAGEANTRY THAN POLICY

Trump touted deals with Xi on Chinese purchases of farm goods, beef and Boeing aircraft, but the details were thin.

He departed Beijing without extending a trade truce due to expire later this year. Markets were disappointed that a deal reported by Trump for China to buy 200 Boeing jets wasn’t bigger, and traders said U.S. soybean futures fell to their lowest level in more than two weeks on Friday after the summit failed to produce specific deals for American farm goods.

On major issues from expanding trade to artificial intelligence and Taiwan, the leaders appeared to have made little progress beyond agreeing to disagree and, perhaps, to keep talking.

The two countries agreed to set up separate boards to govern bilateral trade and investment, but Chinese Foreign Minister Wang Yi said officials from both sides were still working out details.

Unlike in 2017, the leaders made no joint public statement to the media. They didn’t release mutually agreed summaries of their meetings, nor a fact sheet detailing what came out of the talks. China’s public statements made little specific reference to purchase agreements or other commitments by Xi to the U.S.

A person familiar with the planning for the trip said there was little pressure within the White House to secure a big new deal.

The pageantry outshone the policy. Xi treated Trump to goose-stepping soldiers and succulent preparations of Beijing beef but sent him home with little of substance to show for his journey.

STRATEGIC SILENCE ON TAIWAN

When Trump emerged from his first round of talks with Xi on Thursday, reporters wanted to know one thing. What did they discuss on Taiwan?
Standing at the ancient Chinese Temple of Heaven alongside Xi, a president known for his loquaciousness opted for an almost spiritual silence. Trump said nothing.

By that point, China had already released an extended summary of Xi’s own comments on Taiwan in the private meeting with Trump. The Chinese leader warned that mishandling the countries’ disagreements over Taiwan, the democratically governed island claimed by Beijing, could push China-U.S. relations to a “dangerous place.”

For much of the trip, Trump appeared inclined to maintain the United States’ traditional “strategic ambiguity” on the topic.

As he headed back to Washington on Friday, he finally offered a bit more. In Trump’s telling, Xi wanted more information about where Trump stands on Taiwan, in particular if he would defend the island.

“I said I don’t talk about that,” Trump told reporters aboard Air Force One.

Trump also did not commit to selling more arms to Taiwan, telling reporters he would decide later.

DISCIPLINED TRUMP

Trump often deviates from his prepared remarks to spin yarns, give advice, drop insults or tell jokes.

In Beijing, the Republican president stayed on script, including during a prewritten toast he delivered to Xi at a state dinner on Thursday.

A White House official said Trump was eager to pull off a summit that improved ties, and Chinese Communist Party officials are not well known for appreciating surprises during their highly choreographed events.

For his part, Xi paired gestures of friendship with pointed warnings, underscoring both cooperation between the two countries and their sometimes frosty ties.

“We must make it work and never mess it up,” he said of the China-U.S. relationship.

HEADWINDS BACK HOME

Trump arrives back in the U.S. facing the same political quagmire that dogged him before the trip.

Gas prices, high. Inflation, high. Voter anger, high.

The U.S. president badly needed a win as his administration struggles to contain the political and economic fallout from the war with Iran. The highly anticipated visit may have offered a short-term distraction, but it likely will do little to shift the narrative.

Trump is saying he’s still heading for China in about 10 days time- We’ll see?

Australianews.net

Beijing [China], May 3 (ANI): The Chinese government has issued a formal injunction to block US sanctions directed at five domestic refiners, including the Hengli Petrochemical Refinery, accused by Washington of purchasing Iranian oil.

China Daily, a state-affiliated English-language outlet, defended Beijing’s decision by describing the move as a ‘defensive and justified response’ to what the government characterises as a clear violation of international law.

In an analysis for the outlet, writer Li Yang argued that the sanctions imposed by Washington lack the necessary authorisation from the United Nations. Consequently, Li asserted that such measures ‘violate international law and the basic norms of international relations.’

He further contended that the US ‘is not merely targeting specific companies‘ but is actively attempting to assert ‘jurisdiction over third-party trade between sovereign actors.’

Connecting this to broader geopolitical strategies, Li noted that the US has historically utilised the global dominance of the dollar to expand the reach of its domestic policies. He observed that ‘secondary sanctions penalising entities that transact with blacklisted parties have become a staple of US statecraft.’

According to the report, China’s judicial and administrative response serves to establish a firm boundary against external interference. Li concluded that the injunction sends a definitive message that ‘Chinese entities are not to comply with illegal US sanctions.’

In a sharp escalation of trade hostilities, China’s Ministry of Commerce (MOC) on Saturday formalised this stance by issuing a blocking measure prohibiting domestic entities from complying with the US restrictions, Xinhua reported.

This marks the first time Beijing has officially invoked its ‘blocking statute,’ a legal mechanism designed to neutralise the extraterritorial reach of foreign laws, signaling a shift from diplomatic protests to active legal countermeasures.

signaling a shift from diplomatic protests to active legal countermeasures.

According to Xinhua, the specific companies named under this protection include Hengli Petrochemical (Dalian) Refining Co., Ltd., Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd., and Shandong Shengxing Chemical Co., Ltd.

As per the Chinese MOC, the US measures involve placing these firms on the Specially Designated Nationals (SDN) list, freezing their assets, and restricting transactions with them.

An MOC spokesperson criticised the US actions, stating that such measures improperly restrict normal economic and trade exchanges between Chinese companies and third countries. The spokesperson added that these actions target citizens and organisations in violation of international law and basic norms governing international relations, Xinhua reported.

The Chinese response follows a period of heightened scrutiny from Washington. Last month, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) cautioned global financial institutions about the sanctions risks associated with dealings involving independent Chinese oil refineries, commonly known as ‘teapot’ refineries, particularly those based in Shandong province.

According to an alert by the OFAC, these refineries have continued to play a significant role in importing and processing Iranian crude oil throughout 2026. The Treasury Department has identified these refineries as major buyers supporting Iran’s oil economy, having reportedly purchased billions of USD worth of Iranian petroleum.

The Chinese Commerce Ministry stated that the blocking order was issued in accordance with Beijing’s rules on countering the extraterritorial application of foreign laws. The measure aims to safeguard national sovereignty, security, and development interests while protecting the legitimate rights of Chinese entities, as reported by Xinhua.

Reiterating its position, the spokesperson said the Chinese government firmly opposes unilateral sanctions that are not authorised by the United Nations or grounded in international law. (ANI)

Bessent says Chinese Banks Warned about Secondary Sanctions

The Treasury Department warns China, Hong Kong, the UAE and Oman

The warning comes the day after the Treasury Department sent a letter to financial institutions in China, Hong Kong, the UAE, and Oman, threatening to levy secondary sanctions for doing business with Iran, and accusing those countries of allowing Iranian illicit activities to flow through their financial institutions.

Bessent told reporters that two Chinese banks have received warnings about handling Iranian money. Trump is preparing to visit Beijing next month for talks with Chinese President Xi Jinping.

That meeting now set to take place in May was postponed from earlier this year

President Trump’s planned visit to Beijing has been postponed to May 14 to 15 because of the ongoing U.S. war with Iran. What does the delay signal about the state of U.S.-China relations

It’s Brookings so, expect a bias

The Conversation

The US blockade can be seen as the latest attempt by the Trump administration to project strength. But it also throws down a challenge to Beijing. China has been the main purchaser of Iranian oil in recent years and is one of the few nations whose shipping can enter the strait unchallenged.

However, the US seizure of any Chinese shipping could certainly provoke a more dangerous outcome, with the prospect of increased tensions or even conflict with Beijing. Should the US seize a Chinese vessel, Beijing could see this as an act of war on Washington’s part, if it chooses to interpret such an incident as an American effort to strangle the Chinese economy.

While an armed clash between the US and China in the Persian Gulf is unlikely, it is possible that Beijing may deploy its fleet stationed in Djibouti to the region. China’s base in Djibouti is home to its 48th escort group which has previously performed anti-piracy operations in the region as well as escort duties for Chinese-owned ships in the region. This which raises the question over whether Washington would be willing to fire on Chinese warships to enforce its blockade

Would Washington be willing?

How Trump’s gambit helps China..

In addition, the potential shortage of petroleum can open the door for wide-scale adoption of electric vehicles (EVs), with Chinese firms such as BYD being potential beneficiaries of a future EV boom. This echoes the popularity of Japanese cars during the Opec crisis of the 1970s, due to their comparatively high fuel efficiency in contrast to American and European models.

As a result, a prolonged Middle East oil crisis may see firms such as BYD become household names, furthering the influence of “Brand China”.

Alongside these, the crisis may further China’s push to present itself as a more stable partner in contrast to Washington’s more chaotic approach. (Yah!) This has gained traction due to the perceived unpredictability of the Trump administration over the past 15 months.

China already has a comparatively favourable global image when compared to the US. A wider conflict with Iran will probably take this further. As a result, the path of the Rich Starry may chart the course of the Sino-American competition and the world that this competition will shape.

Unintended consequences…