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United States Secretary of the Treasury Scott Bessent on Wednesday (local time) warned that the US is prepared to impose secondary sanctions on Chinese financial institutions if they are found facilitating Iranian financial flows.
"Iran used to be the largest state sponsor of terrorism. China was purchasing more than 90 per cent of their oil, which is about 8 per cent of China's energy needs," Bessent said during a press briefing. He added that recent geopolitical developments could disrupt this flow. "We believe that due to the blockade in the Straits, there will be a pause in Chinese buying," he said, referring to tensions affecting key maritime routes. Bessent also revealed that the US Treasury has already reached out to Chinese financial institutions over concerns of potential sanctions violations. "Two Chinese banks received letters from the US Treasury. I'm not going to identify the banks, but we told them that if we can prove that there is Iranian money flowing through your accounts, then we are willing to put on secondary sanctions," he said. The remarks come amid broader US efforts to tighten economic pressure on Iran and curb its financial networks, particularly those linked to oil trade and alleged support for proxy groups. The development follows US President Donald Trump's recent claim that China has assured Washington it will not supply weapons to Iran. Trump said the assurance came after a direct exchange of letters with Chinese President Xi Jinping, amid concerns over Beijing's potential military support to Tehran. In a post on Truth Social, Trump said China supports efforts to keep the Strait of Hormuz open, a key global energy corridor that has been at the centre of escalating tensions following recent US-Israel strikes on Iran. The Trump administration has stepped up warnings to countries engaging with Iran, cautioning that those found supporting Tehran's military or economic activities could face severe penalties, including sanctions and tariffs reaching 50 per cent. The situation unfolds against the backdrop of ongoing conflict in West Asia, with disruptions in maritime trade and a US-led blockade adding strain to global energy supplies and diplomatic relations. (ANI)
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