U.S. Treasury Secretary Scott Bessent on Monday threatened sanctions against countries that continue doing business with Iran, a move that could heighten tensions with China weeks before President Xi Jinping is scheduled to visit Washington.
Under the plan announced today, Bessent said countries would be given a deadline to cease their engagement with Iran or face secondary sanctions, as part of the Trump administration’s efforts to cut Iran out of the global economy.
Responding to a question following his announcement, Bessent indicated U.S. targets could include Chinese banks with relationships in Iran.
“No one is above the reach of U.S. sanctions,” he said.
China remains the biggest buyer of Iranian oil. In 2025, China imported 1.38 million barrels per day, which accounts for more than 80% of all Iranian oil exports, according to energy analytics firm Kpler.
Chinese Foreign Ministry spokesperson Lin Jian said Monday before Bessent’s announcement that new sanctions could escalate the conflict.
“China will closely watch relevant developments and do what is necessary to protect our legitimate rights and interests,” Lin Jian said.
This spring, the Trump administration sanctioned one of China’s biggest independent oil refineries, an oil terminal, and about 40 Chinese vessels and shipping companies involved in transporting Iranian oil.
Chinese President Xi Jinping is expected to visit the White House on September 24th.
