US Sanctions Pressure on Iran Enters New Phase: From Chinese Refinery Sanctions to Bank Warnings

Donya-e-Eqtesad reported today, Monday, 26 Mordad 1405 (August 17, 2026), that the administration of US President Donald Trump is weighing new options to intensify economic pressure on Iran. According to data from the US Treasury's Office of Foreign Assets Control (OFAC), the agency has sanctioned more than 1,000 individuals, vessels and aircraft, and blocked about 500 billion dollars in Iran-linked cryptocurrency, since the start of Trump's second term.

Per the report, one option under discussion is targeting independent Chinese refineries known as "teapots," which an analytics firm said, based on 2025 data, absorb a large share of the more than 80 percent of Iran's oil exports that China buys. The US Treasury has also warned two larger Chinese banks they could face secondary sanctions if it is determined Iranian funds moved through their systems, though it has not officially named the banks. Other options cited include a land blockade with the cooperation of Iran's neighbors and secondary tariffs on Tehran's trading partners; the US Senate passed a bill last week that includes new Iran sanctions and new tariff authority for Trump, which must still clear the House of Representatives.