The U.S. Treasury warned banks of sanctions if they support transactions with Chinese ‘teapot’ refineries importing Iranian oil. It highlighted that China handles approximately 90% of Iran’s oil exports and that these refineries utilize the U.S. financial system for transactions. The Treasury cautioned about the potential for further sanctions due to the illicit transportation of Iranian oil.
The US issued a warning to global financial institutions regarding China's small refineries purchasing Iranian crude oil, citing risks associated with sanctions. The Treasury Department blacklisted 17 individuals and 19 companies linked to facilitating Iranian oil revenue, targeting a network of front companies. The alert urged banks to scrutinize transactions and monitor the use of ‘shadow fleets’ to conceal Iranian oil shipments.