US Warns Chinese Banks of Iran Oil Sanctions

China has bought more than 80% of Iran’s shipped oil, making Chinese refiners and banks central to a revenue stream that helps Tehran withstand US restrictions. Washington calls its financial pressure campaign “Economic Fury,” the economic counterpart to Operation Epic Fury. Secondary sanctions would force foreign lenders to choose between Iran-linked business and access to the US financial system, including dollar clearing, giving the Trump administration a potent lever over Tehran and Beijing.

Treasury Secretary Scott Bessent said at a White House briefing on April 15 that the Treasury had sent letters to two unnamed Chinese banks. The notices warned that if US officials can prove Iranian funds passed through their accounts, Washington would impose secondary sanctions, potentially severing them from US finance and dollar clearing. The Treasury disclosed no transaction value. The warning came about a month before Donald Trump and Xi Jinping were scheduled to meet in Beijing on May 14-15.