---
title: US–China Sanctions Escalation Over Iranian Oil
description: Jack Prandelli argues that 90% of Iran’s oil exports go to China, prompting a US sanctions escalation aimed at Beijing. The US has built a multi-step pressure strategy including sanctions on shadow fleet vessels, teapot refineries like Hengli Petrochemical, and networks of front companies across Asia. It has also issued warnings to Chinese banks about potential secondary sanctions if Iranian oil payments continue flowing through their systems. Full secondary sanctions on major Chinese banks remain a possible next step, which could significantly escalate US–China financial tensions. Outcome depends on Beijing.
---

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# [US–China Sanctions Escalation Over Iranian Oil](https://blog.syzgroup.com/syz-the-moment/us-china-sanctions-escalation-over-iranian-oil)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | May 12, 2026, 3:01:04 PM

[View full post](https://blog.syzgroup.com/syz-the-moment/us-china-sanctions-escalation-over-iranian-oil)

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