US Warns Chinese Banks of Sanctions Risk Over Iran Ties

The US has warned that it may cut off any business helping Iran bypass sanctions, putting Chinese banks in a difficult position. Treasury Secretary Scott Bessent said entities involved in money laundering or sanctions evasion for Iran could be severed from the US financial system.

Bessent specifically mentioned Chinese banks, saying they would be targeted if they facilitate transactions that convert Iranian oil into money and repression. China has stated it will take necessary measures to defend itself against what it calls 'illicit unilateral sanctions'.

China's largest trading partner is Iran, with Beijing purchasing around 90% of Tehran's oil exports before the conflict escalated. The US has made it harder for countries like China to use the greenback, increasing their motivation to diversify their finances.