Washington warns Chinese lenders of dollar access cuts if they facilitate Iranian oil transactions amid expanded US sanctions.
The US Treasury warned Chinese banks they risk losing access to the dollar system if they aid Iran in evading sanctions. Treasury Secretary Scott Bessent stated entities facilitating Iranian oil transactions would be targeted under new measures dubbed ‘Operation Economic Outcast.’
China, Iran’s largest oil buyer before the sanctions, imported roughly 90% of Iran’s exported crude, accounting for 12% of its total imports. Beijing vowed to protect its interests, calling US sanctions unlawful and unilateral. Analysts note China’s reliance on dollar access conflicts with its opposition to US policy.
Markets await potential fallout as tensions escalate between the world’s two largest economies over financial and trade restrictions.