The US government has imposed sanctions on several companies and individuals suspected of transporting Iranian oil to China. According to the US Treasury Department, among those affected are firms based in Hong Kong and the United Arab Emirates. The Iranian Revolutionary Guard is said to be concealing oil exports through so-called "front companies."
US Treasury Secretary Scott Bessent stated that the US aims to further increase pressure on Iran to deprive the Iranian government and military of financial resources for weapons and its nuclear program. These sanctions follow previous measures against individuals and companies that assist Iran in acquiring weapons and components for drone production.
The new sanctions were announced shortly before US Donald Trump's visit to China. Trump is expected in Beijing on Wednesday for talks with President Xi Jinping regarding trade policy and Iran. The Iran conflict significantly strains relations between the US and China.
China has already blocked UN Security Council resolutions twice aimed at protecting commercial vessels in the Strait of Hormuz and is a key buyer of Iranian oil. The current developments could further escalate geopolitical tensions in the region.
