Trump Targets China in Bid to Escalate Pressure on Iran
US President Donald Trump has announced plans to increase economic pressure on Iran, which could have far-reaching consequences for Chinese oil firms, banks, and regional intermediaries.
The US has already imposed numerous sanctions on Iran since the late 1970s, including measures against its nuclear program, human rights violations, and support for militant groups. Since the start of the war with Iran in February, Washington has tightened maritime, energy, and financial sanctions, as well as begun a naval blockade.
The latest sanctions targeted Iran's shadow oil fleet, maritime insurance companies, individuals and entities helping Iran purchase weapons, and digital exchanges. A significant portion of cryptocurrency linked to Iran, estimated at $500 billion, was frozen as part of these actions.
One possible US step could be new sanctions against Chinese independent oil refineries, known as 'teapots,' which account for roughly a quarter of China's refining capacity. These facilities often operate on slim or even negative margins and have limited ties to the US financial system, reducing their exposure to risk.