The United States threatened on Wednesday to put buyers of Iranian oil on its sanctions list, saying the US believed Beijing would suspend those purchases as Washington imposed a maritime blockade on Iran, writes Reuters.
“We have informed countries that if they purchase Iranian oil and if Iranian money is in their banks, we are willing to apply secondary sanctions,” US Treasury Secretary Scott Bessent told reporters at the White House.
The US military's naval blockade of Iran began on Monday as the war against Iran entered its seventh week. China used to buy more than 80% of the oil transported by Iran.
“We believe that with this blockade, China's purchases will be cut off,” Bessent said.
The US Treasury also sent a letter to two Chinese banks and “communicated to them that if we can prove that there is Iranian money flowing through their accounts, then we are willing to apply secondary sanctions,” Bessent added.
China's embassy in the United States did not immediately respond to a request for comment following the US Treasury chief's remarks, Reuters reported.
The Trump administration has long said it is exerting “maximum pressure” on Iran over its nuclear program and support for Middle Eastern militant groups, although oil under sanctions has continued to flow to China.
The US Treasury Department also targeted Iran's oil transportation infrastructure, imposing sanctions on more than two dozen individuals, companies and vessels on Wednesday.
The move came weeks after Washington issued a 30-day waiver on sanctions on sea-borne Iranian oil, which Bessent said last month allowed about 140 million barrels to reach global markets in an attempt to ease pressure from the Middle East war on global energy supplies.
Bessent confirmed on Wednesday that the waiver measure, issued on March 20 and set to expire on April 19, would not be renewed.
The US also did not renew the waiver on Russian oil carried by sea, which expired on Saturday.
Reuters previously reported that the US Treasury had sent letters to China, Hong Kong, the United Arab Emirates and Oman, identifying banks that allowed illicit Iranian activities and warning them that they would face punitive measures from the US.
