Beijing rejects US sanctions threat over Iranian oil

China on Thursday condemned US threats to impose secondary sanctions on two Chinese banks, calling any such measures “illegal” and lacking UN Security Council authorization.

"China opposes illegal unilateral sanctions without the authorization of the UN Security Council," Chinese Foreign Ministry spokesperson Guo Jiakun said during a regular news conference in Beijing.

Guo's remarks came after US Treasury Secretary Scott Bessent said on Wednesday during a briefing that the US has sent letters to two Chinese banks stating: "If we can prove that there is Iranian money flowing through your accounts, then we are willing to put on secondary sanctions."

Bessent also said that China used to purchase more than 90% of Iranian oil, which was about 8% of China's energy needs.

He additionally expressed Washington's belief that with the US blockade in the Strait of Hormuz, "there will be a pause in Chinese buying."

The US has imposed a naval blockade on Iranian ports following rare direct talks between Washington and Tehran in Pakistan over the weekend aimed at ending the war that began on Feb. 28 but which failed to produce an agreement.

Separately, according to a report from the South China Morning Post on Thursday, China has continued to diversify its foreign exchange reserves in February, while trimming its US Treasury stockpile.