The United States has warned Chinese financial institutions that they could face secondary sanctions if they are found handling Iranian financial flows as Washington mounts pressure on Tehran’s economic networks.
US Treasury Secretary Scott Bessent said during a press briefing that Chinese purchases of Iranian oil have been a major concern for Washington.
“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,” he said.
He added that recent developments in the region could affect these purchases. “We believe that due to the blockade in the Strait of Hormuz, there will be a pause in Chinese buying,” he said, referring to tensions affecting the major shipping routes.
US sends warning letters to Chinese banks
Bessent also revealed that the US Treasury has already contacted Chinese banks over possible sanctions violations. According to him, letters were sent warning that financial institutions handling Iranian money could face action.
“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 warning is part of US efforts to tighten economic pressure on Iran, especially targeting oil trade and financial networks that Washington believes support Tehran’s activities.
Trump claims China gave assurance
The development comes after US President Donald Trump recently said Beijing had assured Washington that it would not supply weapons to Iran. He said the assurance followed a direct exchange of letters with Chinese President Xi Jinping.
In a post on Truth Social, Trump also said China supports efforts to keep the Strait of Hormuz open, which has become a focal point of tensions following recent US-Israel strikes on Iran.
Pressure on countries engaging with Iran
The Trump administration has also issued warnings to countries dealing with Iran, saying those found supporting Tehran’s military or economic activities could face penalties. These could include sanctions and tariffs that may reach up to 50 per cent.
The warning comes as tensions in West Asia continue to affect maritime trade and energy supply routes. The US-led blockade and ongoing conflict have added pressure on oil shipments and diplomatic engagement across the region.
With Washington stepping up financial warnings and monitoring banking channels, Chinese institutions now face increased scrutiny over transactions linked to Iran’s oil trade and financial flows.
