China told its independent refineries to disregard U.S. sanctions over their purchases of Iranian crude.
The measures aim to crack down on Iran’s shadow banking system and Chinese purchases of Iranian oil.
The Treasury secretary said that currency swap line would benefit both the United Arab Emirates and the United States.
The Trump administration has loosened restrictions on Russian oil exports since the war in the Middle East began to rattle energy markets in March.
Treasury Secretary Scott Bessent estimated that the move would add about 140 million barrels of crude to the oil market.
Treasury Secretary Scott Bessent said removing sanctions on Iranian oil would lower global prices.
Treasury Secretary Scott Bessent said it was “unfortunate” that the move could benefit Russia, but maintained that it was only for the short term.
America’s vast economic powers are able to wear down an adversary’s economy but are insufficient to topple leaders on their own.
In the lead-up to the U.S.-Israeli attack, President Trump downplayed the risks to the energy markets as a short-term concern that should not overshadow the mission to decapitate the Iranian regime.