US Eyes Sanctions on Chinese Banks Over Ties to Iran

The United States is intensifying its campaign to cut off Iran's sources of income, and President Donald Trump has hinted that Chinese banks may be next on the list for sanctions. According to CNBC and Politico, Trump opened the door to sanctioning Chinese banks over their ties to Iran, raising concerns about escalating tensions with Beijing in the middle of the conflict.

China is Iran's main trading partner, and economically isolating Tehran could force Washington to pressure Chinese financial institutions, potentially leading to global consequences. The Treasury Department has already expanded the risk of secondary sanctions in five Iranian sectors, including digital assets, technology, gold, aviation, and maritime transport.

Treasury Secretary Scott Bessent warned that Chinese banks linked to the conversion of Iranian oil into income could become targets. However, sanctioning large Chinese state-owned banks would be a significant leap, as they hold around $25 trillion in combined assets.