US Treasury threatens sanctions on entities facilitating Iranian oil trades

US Treasury Secretary Scott Bessent has announced a plan to target entities that facilitate the laundering of money for Iran, threatening to revoke their access to the US dollar system. The Treasury Department has already identified nearly 60 entities, individuals, and vessels linked to Iranian oil and weapons networks, 21 of which are based in China.

Because China consumes approximately 90 percent of Iran’s exported oil, the policy places significant pressure on Beijing. Bessent stated that “no one is above the reach of US sanctions” and warned that any entity involved in the ecosystem that converts Iranian oil into revenue for repression will be targeted. This development comes ahead of a scheduled summit between President Trump and President Xi Jinping on September 24.

Chinese Foreign Ministry spokesperson Lin Jian responded by stating that sanctions and pressure tactics do not resolve issues and only lead to escalation. Analysts note that while the US aims to squeeze Iran’s cash pipeline, the enforcement against Chinese firms could impact global energy markets and US gasoline prices, particularly as much of China’s energy transit occurs through the Strait of Hormuz.