US Treasury urges China to support proposed Iran sanctions, citing lower energy prices as incentive

US Treasury Secretary Scott Bessent made a pointed appeal to China during a CNBC interview, urging Beijing to back Washington’s sanctions push against Iran. His pitch was surprisingly simple: help us squeeze Tehran, and you’ll get cheaper oil in return.

The ask comes as the US intensifies economic pressure on Iran over its nuclear and missile programs, with the Strait of Hormuz sitting at the center of the geopolitical chess match. Roughly 20 million barrels of oil pass through that narrow waterway every day, accounting for about 20% of global petroleum liquids consumption.

China’s awkward position as Iran’s top oil customer

The reason Bessent is directing his message at Beijing specifically is straightforward: China accounts for over 90% of Iranian oil purchases in recent periods. As other buyers backed away from Iranian crude to avoid US sanctions exposure, Chinese firms filled the gap.

When asked whether the US might directly target China for doing business with Iran, Bessent played it diplomatic, saying those conversations were better handled privately. But the public nudge was hard to miss. “Get with the programme” is not the language of a man planning to let the issue slide.

Bessent has framed this as a win-win rather than a threat, arguing that China would benefit from the reopening of the Strait of Hormuz and the resulting drop in energy prices.

The strait as leverage

The Strait of Hormuz, wedged between Iran and Oman, is one of the most strategically important chokepoints in global trade.

In May 2026, Bessent went so far as to claim the US has “absolute control” of the strait. By August, the tone had shifted slightly toward diplomacy, with Bessent suggesting a potential US-Iran agreement to restore “freedom of movement” through the waterway.

On August 20, 2026, Bessent reiterated that the US would intensify economic measures against Iran rather than restart combat operations.

Bessent’s remarks were strategically timed ahead of a forthcoming meeting between US President Trump and Chinese President Xi, aiming to recalibrate US diplomatic strategies toward Iran while seeking China’s assistance in stabilizing energy prices.

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