Live updates: Iran defiant as US vows ‘economic D-Day’ penalties on nations doing business with Tehran

US Treasury Secretary Scott Bessent has warned of potential dire consequences for countries with economic ties to Iran.

“Every country has a defined timeline to shut down activities we have identified. If they do not take action, we will do so unilaterally through Treasury authorities,” Bessent said at a news conference.

Bessent declined to name the specific countries. However, China, India, Turkey, Iraq, and the United Arab Emirates could be most at risk for US action, experts told CNN.

“China, by far, is the most impactful one if you really wanted to make a dent in Iran’s ability to continue to finance their activities,” said Daniel Tannebaum, a nonresident senior fellow at the Atlantic Council.

According to the US-China Economic and Security Review Commission, China is Iran’s largest trading partner and purchaser of Iranian oil.

Iran sent $22.4 billion in exports to China and imported $15.6 billion from there in 2022, per the World Bank.

However, experts are skeptical that the administration will act strongly against China, especially ahead of Xi Jinping’s expected visit.

“The US government has never gone hard on economic sanctions on China,” said Tannebaum, who is also a partner at management consulting firm Oliver Wyman.

The UAE has historically been one of Iran’s largest commercial partners. However, it announced last week that it was suspending all trade and financial transactions with Iran “until further notice.”

Turkey has been a robust key trading partner for Iran, with more than $5 billion in bilateral trade in 2024, according to its Ministry of Foreign Affairs, and it imported 13% of its natural gas from Iran last year.

Iraq and Iran have historically traded billions, with Iraq being dependent on Iranian electricity and gas.

India’s trade with Iran has fallen in recent years, standing at around $1.6 billion in 2025-2026, according to India’s Department of Commerce.