Economic Warfare On Iran, White House Ballroom, Bond Market Warning Signs

**Sasha Pfeiffer** (0:02)
The White House is doubling down on economic pressure to choke off Iran's economy.

**Leila Fadel** (0:06)
The US has not sanctioned the governments that buy Iran's oil, but that may change. China is Iran's biggest customer. Could it face consequences?

**Sasha Pfeiffer** (0:14)
I'm Sasha Pfeiffer, that's Leila Fadel, and this is Up First from NPR News.
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**Leila Fadel** (0:32)
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**Leila Fadel** (1:56)
The Trump administration is threatening crippling new economic pressures on Iran. They want that pressure to force Iran back into negotiations over the Strait of Hormuz.

**Sasha Pfeiffer** (2:06)
Treasury Secretary Scott Bessent says next week he'll lay out what new economic pressure on Iran looks like. Diplomatic efforts to revive peace talks have completely stalled after a temporary ceasefire was called off weeks ago.

**Leila Fadel** (2:18)
With us is NPR's Emily Fang to explain the latest. Good morning, Emily.

**Emily Fang** (2:22)
Good morning, Leila.

**Leila Fadel** (2:23)
So the US has already, it already has so many sanctions on Iran, so much economic pressure on Iran. So what exactly is the president threatening beyond what's already being done?

**Emily Fang** (2:33)
Well, he wrote on true social, the social media site that any country that allows institutions or businesses to provide quote, any type of lifeline to Iran will itself face tremendous economic consequences. He appears here to be referring to activity like smuggling Iranian oil out or helping Iran buy goods abroad.
As you note though, the US already has extensive sanctions that makes a lot of international trade with Western countries impossible. And already in June, the US took it one step further. They put secondary sanctions on entities that were helping Iran evade sanctions. So as Sasha mentioned earlier, Treasury Secretary Bessent said he's going to hold a press conference on Monday to explain what this new quote, economic D-Day as President Trump is calling, will entail. But what is notable to me is the focus seems to be on countries and their governments now, so not just on businesses and economic fronts. And the big question that stands out is how this might affect China.

**Leila Fadel** (3:28)
Okay, wait, how is China connected to this?

**Emily Fang** (3:32)
So until now, the US has sanctioned entities that ship or refine oil or move money around that allows China to buy about 80 to 90 percent of Iran's oil before the war. But the US has largely held off on sanctioning the governments of those entities, governments like that of China's.
That might change. China has been one of the top places for money laundering and financial fronts for moving Iranian money around. The US Treasury actually sanctioned several of those fronts in June. And China was the only country that Bessent mentioned, you know, singled out this week. Here's an interview he did with CNBC yesterday.

**Scott Bessent** (4:08)
A reopening of the straight benefits China. Unfortunately, they've been buying, they were the largest consumer of Iranian oil. They were buying about 90 percent of it.

**Emily Fang** (4:18)
Though, when he was asked specifically of China might be targeted under these new economic pressures, Bessent declined to answer.

**Leila Fadel** (4:24)
Interesting. Iran's economy was already struggling before the US and Israel started this war. How is it faring now? And will even more sanctions work?