US Treasury weighs new Iran sanctions targeting Chinese banks, shadow fleets

According to Treasury Secretary Scott Bessent, the US Treasury Department is considering new economic strategies against Iran, including focusing on Chinese banks, shadow fleets, and exchange houses. Critics express doubt, noting that Iran is already facing a naval blockade and numerous sanctions. A significant concern is that further targeting may lead to economic repercussions for the US. Chris Kennedy, an analyst at Bloomberg Economics, emphasized that unless the president elevates the Iran threat above other priorities, particularly China, meaningful changes in Iran's behavior are unlikely. With China purchasing over 90% of Iran's oil exports, penalties on those facilitating these transactions would impact Tehran's oil income directly. Since the US initiated its conflict with Iran in late February, it has sanctioned some Chinese teapot refineries and companies but has refrained from targeting major Chinese banks involved in financing this trade. Striking Chinese firms could escalate tensions with Beijing, especially before an upcoming meeting between President Donald Trump and Xi Jinping. Furthermore, reducing Iranian oil exports could eliminate discounted crude from the global market, potentially driving up already high oil prices. The administration's options are limited, and it remains uncertain which strategies, if any, will be implemented. Officials may choose to combine various measures or take a different route altogether.