US threatens sanctions against countries, companies buying Iranian oil
US Treasury Secretary Scott Bessent Aug. 24 threatened secondary sanctions on any nation or entity maintaining economic ties with Iran, including buying its oil. He specifically warned Tehran's trading partners (China, Turkey, and the UAE) to sever economic links or face direct US financial retaliation.
The Treasury plan, Operation Economic Outcast, does not immediately impose the secondary sanctions; it was framed as a deadline-driven warning to give violators time to comply. Bessent said President Trump was already contacting world leaders to request formal cooperation in isolating Tehran in hopes of ending the 6-month-plus old war.
The sanctions package continues to crack down the 'shadow fleet' by expanding tracking and blacklisting the oil tankers, shipping insurers, and others that help smuggle Iranian crude. It also targets financial intermediaries that help channel oil sales into usable revenues.
China, the largest buyer of Iranian crude oil, issued a formal order directing Chinese companies to disregard US sanctions. China purchases 80-90% of Iran's exported oil. Beijing also vowed to take all "necessary measures" to defend its energy security and trading rights.
About the Author
Cathy Landry
Washington Correspondent
Cathy Landry has worked over 20 years as a journalist, including 17 years as an energy reporter with Platts News Service (now S&P Global) in Washington and London.
She has served as a wire-service reporter, general news and sports reporter for local newspapers and a feature writer for association and company publications.
Cathy has deep public policy experience, having worked 15 years in Washington energy circles.
She earned a master’s degree in government from The Johns Hopkins University and studied newspaper journalism and psychology at Syracuse University.