U.S. Sanctions On Iran Face China Test

The U.S. and China appear set for a showdown after Washington warned that “no one is above the reach of U.S. sanctions”. China is the main buyer of Iranian oil and has said it views unilateral sanctions as illegal.

Over 80% of Iranian oil shipped is now exported to China, which acts as a critical lifeline for the Islamic Republic, and while U.S. Treasury Secretary Scott Bessent urged cooperation from China, Washington is wary of Chinese retaliation if sanctions are applied on its banks ahead of expected ⁠talks next month between Presidents Trump and Xi. The U.S. is particularly sensitive to restrictions on China’s exports of critical minerals.

U.S. leverage on China appears to be limited. Iranian crude oil accounts for less than 14% of China's oil imports, and supplies to China may already be drying up due to the U.S. blockade of Iranian ports. In addition, China was busy building up a huge strategic inventory, larger than the U.S., Japan, and Europe combined, to the extent that when global oil supplies were most restricted, Beijing’s stockpiles were able to smooth Chinese demand – and prevent prices from spiking even higher.

Ukraine Widens Attacks On Russian Online Retailers

Ukraine is targeting logistics hubs owned by Russia’s second-largest online retailer Ozon, widening a campaign of drone strikes on Russian e-commerce companies.

Ozon’s shares tumbled on Monday after it reported strikes in southern Russia, bringing the number of its facilities targeted in the last three days to six.

Kyiv had, until last week, focused its attacks on Ozon’s rival, Wildberries, in the e-commerce sector – one of the fastest-growing parts of the Russian economy, which is otherwise close to stagnation after four-and-a-half years of war in Ukraine.

The strikes are part of a wider campaign to disrupt Russia’s economic infrastructure, choke off war financing and bring the realities of the conflict home to ordinary Russians as Moscow continues to pound cities and infrastructure across Ukraine, Reuters said.