US Treasury chief meets with global banks on Iran oil sanctions

3/4/2025 6:11

U.S. Treasury Secretary

Scott Bessent on Wednesday met in Washington with 16 global

banks and federal law enforcement agencies on U.S. sanctions

policy on Iran including efforts to cut its oil exports.



Bessent said President Donald Trump's administration is

applying economic pressure to the maximum extent possible to

disrupt Iran's access to financial resources that help it fund

Hamas and other militant groups throughout the Middle East and

its efforts to obtain a nuclear weapon.



"This includes the billions of dollars each year that Iran

generates via its oil sales, which the regime also uses to

finance its dangerous agenda and support its multiple terrorist

proxies and partners," Bessent said, according to a copy of his

remarks.



Iran says its nuclear program is for civilian purposes.



Trump restored his policy of maximum pressure on Iran in

February that includes efforts to drive its oil exports down to

zero.



In March Treasury slapped sanctions on tankers carrying

Iranian oil and on a Chinese "teapot" refinery for processing

the oil. Teapots are small, independent refineries in China.

China's national oil company refineries have stopped buying

Iranian oil over concerns about sanctions.



Bessent mentioned the U.S. sanctioning of Shandong Shouguang

Luqing Petrochemical Co., Ltd, the small refinery, and its chief

executive officer for purchasing and refining hundreds of

millions of dollars’ worth of Iranian crude oil, including from

vessels linked to the Houthis and the Iranian Ministry of

Defense and Armed Forces Logistics.



"Teapot refinery purchases of Iranian oil provide the

primary economic lifeline for the Iranian regime," Bessent said.



Bessent also warned the banks that Iran conducts its foreign

exchange activities through a covert shadow banking network. "My

message to financial institutions worldwide is unequivocal:

safeguard your institutions from being exploited by this malign

network, so you can continue to serve your legitimate clients

with integrity," Bessent told the banks, according to the

Treasury Department.



The department did not immediately respond to a request

about which banks and agencies participated.



Bessent said Treasury uses tools such as Wednesday's meeting

to bring together financial institutions, regulatory agencies,

and law enforcement, to disrupt what it calls Iran’s illicit

revenue streams.



In an NBC interview over the weekend, Trump also threatened

so-called secondary tariffs, which affect buyers of a country's

goods, on both Russia and Iran. He signed an executive order in

March authorizing such tariffs on buyers of Venezuelan oil.