Iran war tests Trump's trade truce with China

In China on 25 August 2026, Beijing criticized new US sanctions on Iran and on its trading partners. China denounced 'economic wars' and called the sanctions 'illegal', and it warned it could retaliate if Trump's 'Economic D-Day' sanctions hit its Iran oil trade. The National writes that the Iran war tests Trump's trade truce with China.

Scott Bessent said Iran's leadership is 'panicking' and vowed to sever 'every economic lifeline'. Iran vowed to resist the widened sanctions and said Washington seeks talks. Associated Press reports that Iran's gas lines are growing but there is no sign its leaders will bow to the sanctions. Nikkei Asia also reports that US scrutiny deters some Chinese tariff refund claims while others cash in.