WASHINGTON/BEIJING: Growing U.S. economic pressure on Iran could create a new source of tension between Washington and Beijing, particularly because China remains Iran’s largest oil customer and an important trading partner.
U.S. President Donald Trump warned on Wednesday that countries providing “any type of lifeline” to Iran could face economic consequences, promising what he described as economic warfare and isolation on an unprecedented scale. The warning did not specify which countries or measures could be targeted.
The warning is significant for China because Beijing has maintained commercial and energy ties with Tehran despite years of U.S. sanctions. Any attempt by Washington to target Chinese companies, banks, shipping firms or other entities involved in Iran-related trade could turn the dispute into a broader U.S.-China confrontation.
China has already called for diplomacy and could strongly resist additional U.S. measures against its trade with Iran. Beijing’s position is particularly important because the conflict has disrupted energy supplies and shipping through the Strait of Hormuz, a critical route for global oil and gas.
The impact is already being felt in the energy market. Reuters reported that Brent crude rose to around $94 a barrel on Thursday, while U.S. West Texas Intermediate crude climbed to nearly $89 a barrel, as investors remained concerned about prolonged supply disruptions.
China is also adjusting its energy strategy. Chinese state-owned shipping companies have reportedly moved some oil tankers away from key Gulf chokepoints and are collecting cargoes outside the Gulf to reduce exposure to the ongoing conflict.
The situation could become even more complicated if Washington introduces tougher secondary sanctions targeting companies or countries that continue buying Iranian oil. Such measures could force Chinese businesses to choose between maintaining their Iranian trade and protecting access to the U.S.-dominated global financial system.
The dispute therefore goes beyond Iran. It could affect global oil prices, international shipping, China-U.S. trade relations and the wider global economy.
For now, the biggest question is whether Washington will actually impose new measures on Chinese entities—and how strongly Beijing would respond if it does.
If that confrontation escalates, the Iran crisis could evolve from a regional conflict into a much wider economic and geopolitical dispute involving the United States and China.
