The U.S. Treasury has warned banks and financial institutions that they risk sanctions if they engage in transactions with Chinese refineries that process oil from Iran.
The alert highlights the significant role these so-called 'teapot' refineries play in handling a large portion of Iran's oil exports, which are under U.S. sanctions.
The Treasury urged institutions to exercise caution and avoid supporting such activities.
The warning comes amid ongoing tensions in the global energy market, where U.S. sanctions on Iran have long disrupted oil flows.
The alert underscores the continued importance of monitoring secondary sanctions and their impact on global trade routes and energy supply chains.
While the immediate market reaction has been muted, the move could have for how financial institutions handle energy-related transactions involving sanctioned countries.