US will implement secondary sanctions if Iran funds China
United States Secretary of the Treasury Scott Bessent on Wednesday issued a warning that the US is ready to impose secondary sanctions on Chinese financial institutions if they are discovered to be facilitating Iranian financial flows. Iran was once recognized as 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 briefing. He stated 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 stated, alluding to the tensions impacting crucial 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 have been issued 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 comments arise in the context of wider US initiatives aimed at intensifying economic pressure on Iran and restricting its financial networks, especially those associated with oil trade and purported backing of proxy groups.
The development comes in light of US President Donald Trump’s recent assertion that China has guaranteed Washington it will refrain from supplying weapons to Iran. Trump stated that the assurance followed a direct exchange of letters with Chinese President Xi Jinping, in light of worries regarding Beijing’s possible military support to Tehran. In a post on Truth Social, Trump stated, “China supports efforts to keep the Strait of Hormuz open,” highlighting its significance as a crucial global energy corridor amid rising tensions following recent US-Israel strikes on Iran.
The Trump administration has intensified its warnings to nations interacting with Iran, advising that those identified as supporting Tehran’s military or economic endeavors may encounter significant repercussions, including sanctions and tariffs that could soar to 50 percent The situation develops amid the persistent conflict in West Asia, where disruptions in maritime trade and a US-led blockade are intensifying pressures on global energy supplies and diplomatic relations.
