The Biggest Victims Of Trump’s Economic D-Day On Iran
Trump’s “economic D-Day” against Iran is built around one of Washington’s most powerful weapons: access to the U.S. financial system. The problem is that the deeper Washington pushes into Iran’s remaining trade, the bigger the targets become. China buys more than 80% of Iran’s seaborne crude. Iraq relies on Iranian gas for as much as 40% of its electricity generation. Turkey imported 4.5 bcm of…
The Trump administration's economic D-Day against Iran is centered around the nation's access to the U.S. financial system. The deeper Washington delves into Iran's remaining trade, the more significant the targets become. China is the largest purchaser of Iran's seaborne crude, accounting for over 80% of its exports. Iraq, meanwhile, relies heavily on Iranian gas for up to 40% of its electricity generation.
Meanwhile, Turkey has imported 4.5 bcm of Iranian gas during the first half of the year. India maintains a one-sided trade relationship with Tehran as well. The UAE, once a crucial conduit for Iran's commerce, has already suspended dealings with Tehran. While the U.S. Treasury can sanction tankers, traders, and small Chinese refiners without causing extensive collateral damage, hitting major banks financing Iran's commerce is a different matter.
The Treasury's cautious approach on Monday targeted nearly 60 individuals, companies, and vessels, expanding sanctions across shipping, aviation, technology, gold, and digital assets, but avoided China's major banks. This leaves the most powerful aspect of Trump's threat still hanging over Iran's trading partners. If the initial round fails to curtail Iranian commerce sufficiently, Washington can move from sanctioning evasion networks to targeting banks and companies that still have substantial business in the United States.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
