Key Iranian trading partner China rejects Trump’s ‘economic D-Day’ threat

Key Points:

• The 60-day window for US-Iran peace talks expired without progress, with US President Trump halting negotiations and threatening intensified economic sanctions against Iran, while Iran demands lifting sanctions and military threat cessation before reopening the Strait of Hormuz.
• The US imposed new sanctions on Hezbollah, designating it as an Iranian proxy, while Iran’s Islamic Revolutionary Guard Corps warned of deploying more destructive weapons if conflict resumes; meanwhile, the USS Abraham Lincoln aircraft carrier is returning home after an extended deployment amid crew morale concerns, replaced by the USS George Washington.
• The United Arab Emirates suspended all trade with Iran following missile attacks it blamed on Tehran, which Iran denied; economic pressures on Iran are mounting as global oil prices rise and fuel supply tightens due to war and export restrictions.
• China criticized US sanctions as ineffective and urged diplomatic solutions, maintaining its economic support for Iran despite US pressure; Trump’s threats of an “economic D-Day” face challenges due to limited leverage over China, Iran’s main crude oil buyer.
• Iran’s economy is suffering severe inflation and food shortages, exacerbated by the ongoing conflict and sanctions, with markets showing reduced consumer activity and vendors struggling with complex import logistics amid economic hardship.