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The US's reluctance to impose secondary sanctions on major Chinese financial institutions for trading with Iran shows a critical limitation of its economic pressure strategy. The desire to maintain stable relations with global powers like China forces the US to moderate its sanctions, making the threats appear hollow and less effective.

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The latest US sanctions campaign against Iran was presented as a major offensive but lacked significant new actions, such as sanctions on major Chinese banks. This suggests the US is pivoting from military options to economic threats that it may be hesitant to fully enforce, risking that the Iranian regime perceives it as weakness.

The push for conflict with Iran wasn't just about nuclear threats but a calculated move. By controlling the Strait of Hormuz, the US could cut off China's primary oil source, forcing them into economic concessions and shoring up the US dollar.

The recent conflicts in Iran and Venezuela can be framed as a covert economic war against China. Since China buys 90% of Iran's oil and relies on Venezuela's supply, US actions disrupting these nations directly target China's energy security and serve as a tool of economic containment.

Despite being Iran's ally, China is highly vulnerable to a prolonged Hormuz crisis. If the economic damage becomes severe enough, China may be forced into an ironic alliance with the US to resolve the conflict, prioritizing its own stability over its geopolitical partnership with Iran.

Due to sanctions, Iran's oil exports go almost exclusively to China. This monopsony gives Beijing immense leverage, allowing it to demand deep price discounts and pay in yuan. The funds are held in Chinese banks, restricting Iran to using them only for Chinese goods, crippling its ability to buy essentials elsewhere.

The predicted US military action in Iran serves a dual purpose. After shutting down oil from the Strait of Hormuz, Trump will leverage China's dependence on that oil. He will offer to reopen the spigot only if China assists in secularizing Iran and removing its uranium, using economic pressure to achieve geopolitical goals.

The move against Iran is not just a regional conflict but part of a grand strategy to disrupt the China-Russia-Iran-North Korea axis. By attempting to cut off China's access to cheap oil from Iran and Venezuela, the goal is to weaken China’s economic rise, even at the risk of global instability.

China has explicitly stated it will ignore US sanctions against Iran, signaling a major shift in global power dynamics. With the world's second-largest economy refusing to comply, the US's ability to use economic warfare as a primary foreign policy tool is severely diminished.

China counters US sanctions by making it illegal for companies within its borders to comply. This creates a legal bind, forcing businesses to choose between breaking US law or Chinese law, with penalties threatened for siding with the US.

Despite relying on Iranian oil, China is avoiding strong support for Tehran to protect its oil supply through the Strait of Hormuz and prevent economic reprisals from the U.S. This pragmatic, transactional approach prioritizes economic stability over ideological or military alliances.