The U.S. declared an ‘onslaught’ on Iran. China’s banks got a pass
China buys 80% of Iran's oil exports. Treasury sanctioned a tanker and a Hong Kong shipper — not the banks tied to the U.S. financial system.
The U.S. Treasury Secretary Scott Bessent has declared an "economic onslaught" on Iran's financial connections worldwide, with one major caveat: China. As Iran's largest trading partner and primary oil importer, Beijing's cooperation with the Islamic Republic is vital. While the U.S. aims to isolate Iran, President Donald Trump is set to host Chinese leader Xi Jinping next month, aiming to maintain a fragile trade truce.
The Treasury Department has sanctioned nearly 60 Iran-linked entities, including a China-owned crude oil tanker and a Hong Kong-based business involved in the ship-to-ship oil transfer of Iranian oil to China. China, which receives over 80% of its oil from Iran, has stated that its cooperation with Iran is within the framework of international law and opposes illegal unilateral sanctions.
Analysts believe that both countries will tread carefully to avoid escalating tensions, with China likely to comply only minimally to avoid disrupting the upcoming summit between Trump and Xi.
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