US Push to Isolate Iran Runs Into China

Summary

Bloomberg News Senior Editor Wendy Benjaminson discusses the Trump administration's push to further isolate Iran and how additional pressure would likely mean targeting China, the dominant buyer of Iranian oil. She says neither China nor Iran is showing signs of capitulating, and that economic pressure may instead encourage Iran to continue military/drone pressure and consider tolling Strait of Hormuz traffic. The conversation also covers weak allied coordination and Trump's rhetoric around the conflict.

• The US is preparing additional measures to isolate Iran's economy, but each step risks making the situation worse for the US.
• China buys about 90% of Iranian oil and can retaliate with tariffs or export controls if pressured.
• Iran remains heavily sanctioned but shows no sign of capitulating.
• Trump wants the fall visit with Xi Jinping to go well, complicating aggressive enforcement against China.
• Allied coordination on Iran pressure is limited compared with prior administrations.
• Economic pressure may not stop the IRGC from continuing drone and military attacks.
• Iran could be incentivized to impose a toll on Strait of Hormuz shipping instead of keeping transit free.