U.S. Treasury Secretary Meets with Chinese Official Over Iranian Oil Trade
On September 20, U.S. Treasury Secretary Scott Bessent met in New York with China’s Vice Premier He Lifeng to discuss sanctions targeting Iran's oil exports. The meeting comes as the United States seeks to cut off Tehran from its primary source of revenue—oil sales, which are largely purchased by Chinese refiners known as 'teapots.' These smaller refineries rely on discounted Iranian crude and account for about 90% of Iran’s exported oil. The U.S. strategy has focused on pressuring foreign banks to avoid facilitating these transactions rather than directly targeting the physical flow of oil. However, this approach faces a challenge: China is also a key trade partner that Washington wants to maintain friendly relations with ahead of an upcoming Trump-Xi summit. The outcome of Bessent’s discussions could influence global oil prices and affect U.S. consumers at the pump. With Iranian crude reserves dwindling—Bessent estimates only about 30 million barrels remain unshipped—the shift in supply is already impacting international markets, with Brent crude above $103 a barrel and gasoline prices near $4.50 per gallon.
Topics: China-Iran relations oil trade sanctions Treasury Secretary meeting