world-economy

U.S. Threatens Sanctions on Chinese Banks Over Iran Oil Transactions

The U.S. Treasury Department is warning Chinese financial institutions they face sanctions if they facilitate Iran oil sales, placing Beijing's banking sector in a difficult position. Treasury Secretary Scott Bessent said Monday that entities helping Iran convert crude into revenue will be targeted and cut off from American financial systems. China rejected the threat Tuesday, pledging to take protective measures and condemning what it called unilateral sanctions lacking international legal basis. Before the war, China purchased approximately 90% of Iran's exported crude, representing roughly 12% of Beijing's total crude imports, making Iran a critical energy supplier. The expanded sanctions campaign, termed "Operation Economic Outcast," identified several China-based companies and individuals as allegedly assisting Iranian interests. The standoff tests whether Chinese banks will prioritize access to dollar-denominated finance or maintain energy trade relationships with Tehran.