U.S. President Donald Trump has indicated he is close to finalizing a decision to impose sanctions on Chinese companies that purchase oil from Iran.
The announcement, made during a high-level meeting in Beijing, signals a potential escalation in efforts to isolate Iran's energy sector, a key source of its revenue.
The prospect of new sanctions has already sparked market jitters, with energy traders recalibrating risk assessments for oil flows through critical shipping routes.
Analysts suggest the move could further complicate global oil supply chains, particularly if China, a major buyer of Iranian crude, is forced to scale back its imports.
This development follows recent reports of U.S. sanctions targeting a major Chinese refinery and shipping firms involved in transporting Iranian oil.
The cumulative effect of these measures is to tighten the economic noose around Iran, limiting its ability to fund regional activities and stabilize its domestic economy.