US Warns Chinese Banks and Oil Buyers of Secondary Sanctions Over Iran Trade

The United States announced it is prepared to enforce secondary sanctions on foreign buyers of Iranian oil and financial institutions holding Iranian funds, according to statements made by U.S. Treasury Secretary Scott Bessent at the White House.

Bessent reported that the U.S. Department of the Treasury has directly written to two Chinese commercial banks, warning that secondary sanctions will be applied if authorities confirm Iranian capital is processed through their accounts. Historically, China has imported more than 80 percent of Iran's seaborne petroleum exports. Bessent stated that Washington anticipates a pause in Chinese purchases as U.S. forces enforce a maritime blockade on Iran.

Alongside the banking warnings, the Treasury Department designated more than two dozen individuals, commercial companies, and maritime vessels linked to Iran's oil transportation infrastructure for sanctions.

Bessent also stated that an earlier 30-day temporary waiver—which had permitted approximately 140 million barrels of Iranian oil at sea to enter global markets—will not be renewed upon expiration. The Chinese embassy in Washington did not immediately respond to requests for comment.