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China Vows to Shield Its Interests as U.S. Plans Sweeping Iran Sanctions
China’s foreign ministry warned on Monday that it will closely monitor the unfolding situation and take necessary steps to safeguard its rights as the United States prepares to unveil sweeping sanctions targeting Iran and its trading partners. U.S. Treasury Secretary Scott Bessent, set to address the press later in the day, threatened “the most severe sanctions in history” against Tehran and urged Beijing to cooperate. The escalating tensions are expected to add geopolitical risk to global markets, potentially affecting energy prices and trade flows while highlighting contrasting investor sentiment, as seen in the recent 500% surge of Chinese robotics firm Unitree after its stock debut.
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China Pledges to Protect Its Rights Amid New U.S. Sanctions on Iran
On Monday, August 24, 2026, China’s Ministry of Foreign Affairs signaled that it will closely monitor the situation and take necessary measures to safeguard its interests as the United States prepares to roll out fresh sanctions targeting Iran and its trading partners.
U.S. Treasury Threatens “Most Severe Sanctions”
U.S. Treasury Secretary Scott Bessent, scheduled for a press conference at 2:00 p.m. EDT (18:00 GMT), warned that Washington will impose “the most severe sanctions in history” on Tehran and called on Beijing to cooperate with the new measures.
At Beijing’s daily briefing, foreign ministry spokesperson Lin Jian urged all parties to act rationally and with restraint. He emphasized that sanctions and pressure tactics alone cannot resolve disputes, highlighting the need for diplomatic solutions.
Market Implications
The escalating sanctions add to existing geopolitical tension in the Middle East, potentially unsettling global markets. Analysts point to several possible effects:
- Higher uncertainty may trigger a risk‑off sentiment, pressuring equity indices and emerging‑market currencies.
- Energy markets could see volatility as investors weigh the impact on Iranian oil exports, a key factor for crude prices.
- Trade routes and shipping lanes, especially in the Strait of Hormuz, may face additional scrutiny, affecting logistics costs.
Meanwhile, unrelated corporate news continues to dominate headlines. On August 19, Chinese robotics champion Unitree saw its share price surge 500 % following its bourse debut, illustrating divergent investor appetite amid broader uncertainty.