Can the US economically isolate Iran without China? Analysts are doubtful

Despite the United States' recent threat of "economic asphyxiation" against Iran, analysts are doubtful that China's cooperation will be forthcoming. For the past six months, Washington has outlined plans to broaden sanctions against Iran, threatening any country that enables the country to become a "global pariah." China has already had several entities hit by these sanctions, with Treasury Secretary Scott Bessent urging Beijing to "get with the program."

However, China has defended its relationship with Iran and pledged to protect its interests, potentially straining ties between the two nations ahead of President Xi Jinping's visit to the US in September. Iran has a long history of evading sanctions through complex international financial networks, with oil serving as the "central economic lever."

While China is a major customer for Iranian oil, it is not entirely cut off from Tehran's crude due to Central Asian highways and railways. Although most shipping in the Strait of Hormuz remains blocked, China remains an important source of revenue for Iran. The United States is aware of this and may target Chinese banks that do business with Iran.

However, Washington has not yet punished major Chinese financial institutions. China's decision to cooperate with Iran could be influenced by its economic self-interest and the need to protect its strategic rival, the United States.