US Treasury chief meets with global banks on Iran oil sanctions
US Treasury Secretary Scott Bessent met with banks and law enforcement to discuss sanctions on Iran's oil exports funding militant groups. He warned institutions about Iran's covert banking network.
US Treasury Secretary Scott Bessent on Wednesday met in Washington with 16 global banks and federal law enforcement agencies on US 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.
US sanctioning
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 US 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.
