US announces new sanctions on Iran, threatening global partners as China criticizes move

The United States has recently implemented a new round of sanctions against Iran, dubbed "Operation Economic Outcast" by Treasury Secretary Scott Bessent, with President Trump labeling it an "economic D-Day". These measures, announced on August 24, 2026, aim to further isolate Tehran from the global financial system by expanding secondary sanctions on entities and countries engaging in trade with Iran across vital sectors such as digital assets, gold, aviation, and shipping. The US has warned that any nation continuing to conduct business with Iran risks being cut off from the dollar-based financial system.

In response, Iran has fiercely condemned the sanctions, with officials dismissing them as a "desperate" tactic and vowing "seismic" retaliation. Iranian Economy Minister Ali Madanizadeh stated the government is prepared to counter these economic threats, suggesting that their approach would not be purely defensive and that enemies should "expect an attack". Iran has also declared that any country cooperating with the US sanctions will be considered an "enemy". An oil tanker was reportedly struck by a projectile near the Strait of Hormuz following the sanctions announcement, underscoring ongoing tensions in the region.

Globally, China, a major buyer of Iranian oil, has strongly criticized the new sanctions, labeling them "illegal" and "unilateral". Beijing has pledged to "firmly safeguard its own rights and interests" and has previously instructed its companies to disregard US sanctions on Iranian oil imports. This diplomatic friction and Iran's vows of retaliation raise concerns about potential economic and military escalation in the nearly six-month-long conflict.