The U.S. Treasury Secretary confirms warning letters sent to two Chinese banks: any business with Iran will face secondary sanctions

U.S. Treasury Secretary Scott Bessent confirmed on Wednesday, April 15, that the Treasury has issued warning letters to two Chinese banks, stating that they would be subject to secondary sanctions by the United States if they engage in business dealings with Iran.

Speaking at a White House press briefing on Tuesday, Bessent said: "I can tell you that two Chinese banks have received letters from the U.S. Department of the Treasury. I won't disclose which banks they are. But we made it clear to them: if we can demonstrate that Iranian funds are flowing through your accounts, we are ready to impose secondary sanctions."

He noted that China purchases about 90% of Iran's oil, accounting for roughly 8% of China's energy demand. However, he believes that due to the U.S. blockade of the Strait of Hormuz, China should stop further purchases.

Previously, Fox Business News reported that the U.S. Treasury had issued warnings to several banks in Oman, the UAE, Hong Kong, and China, stating that continued business with Iran would result in secondary sanctions.

The Treasury posted a message on its X (formerly Twitter) account on Tuesday, stating that the department is actively advancing its "Economic Fury" initiative to maintain maximum pressure on Iran. The statement read: "Financial institutions should take note: the Treasury is utilizing all available tools and authorities, and is prepared to impose secondary sanctions on foreign financial institutions continuing to support Iranian activities."

The Treasury also stated: "The temporary authorization currently allowing the sale of Iranian oil already at sea will expire in a few days and will not be renewed."

Bessent was also asked about the significant decline in the current U.S. trade deficit with China.

Bessent said that the U.S. expects to continue making progress in reducing the trade deficit with China. He added that the high level of mutual respect between the leaders of both countries forms the foundation of the current relationship.

Source: vOA

Original article: toutiao.com/article/1862598323425626/

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