US Treasury Secretary Accuses China of Funding Terrorism Through Iran

In a recent statement, US Treasury Secretary Scott Basset accused China of financially supporting Iran, the world's leading sponsor of terrorism, through its energy imports. He called for Beijing to support US efforts to reopen the strategically vital Strait of Hormuz, which has been blocked by Iranian actions. Basset emphasized the need for China to leverage its influence over Tehran to facilitate diplomatic solutions. This comes ahead of President Trump's visit to Beijing, where discussions on these critical issues are expected to take place. The situation highlights the ongoing tensions in the region and the importance of international cooperation in ensuring maritime security.

By Narendra Chaudhary May 5, 2026, 17:00 IST

US Treasury Secretary's Strong Remarks on China-Iran Relations

US Treasury Secretary Scott Basset has accused China of financing Iran, which he labels as the world's leading sponsor of terrorism, while emphasizing the need for Beijing to support Washington's initiatives to reopen the Strait of Hormuz. This sharp criticism from Basset comes just days before President Donald Trump's visit to Beijing for a meeting with President Xi Jinping. He argued that China's significant energy imports are directly bolstering the Iranian regime. In an interview with a news channel on Monday, Basset stated, "Iran is the largest sponsor of terrorism, and China is purchasing 90 percent of their energy, thus funding the world's biggest sponsor of terrorism."

Call for Strategic Cooperation

Despite the escalating rhetoric, the US official urged Beijing to change its stance and participate in the Washington-led campaign to secure the strategic waterway currently blocked by Iran. Highlighting regional instability, Basset noted that Iranian attacks have closed the strait. "We are working to reopen it. Therefore, I urge China to join us in this international campaign," he said. This appeal follows President Trump's recent announcement of the "Project Freedom," aimed at providing guidance to ships trapped in the waterway. Trump has already warned Tehran against any attempts to obstruct this mission.

Emphasizing Control Over the Strait

Basset further asserted that the US is sending a clear message that Iranians have "no control" over this vital maritime route. He stated, "We have full control over the strait." The Treasury Secretary suggested that China should leverage its influence over Tehran to achieve diplomatic success. He remarked, "Let’s see if they can persuade the Iranians to open the strait through diplomacy."