Scott Basset, the U.S. Treasury Secretary, announced in a session of the House Financial Services Committee that the United Arab Emirates has recently decided to cut all financial and trade relations with Iran.
Response to Protests in the Committee Session
The House Financial Services Committee session was disrupted due to protests from several attendees. The protesters called for an end to the war and the lifting of sanctions on Iran, with one shouting before leaving the room: "Stop the sanctions on Iran, you are killing civilians." Basset was forced to pause his opening remarks and resumed his speech after the protesters exited.
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He further stated that Abu Dhabi has clearly announced that it has stopped its financial and trade transactions with Iran, and one of his deputies has recently had positive discussions with the UAE's financial authorities. This decision by the UAE has been linked to escalating regional tensions, while the country continues to support dialogue and regional cooperation.
Discussions with China Regarding Financial Relations with Iran
Another part of Basset's remarks focused on China's financial relations with Iran. He announced that he is scheduled to meet with He Lifeng, the Vice Premier of China, at the end of this week. These negotiations will take place ahead of the upcoming meeting between Donald Trump and Xi Jinping, and the topic of Iran and China's financial relations with Tehran will be among the main subjects of discussion.
The current situation indicates that Washington is trying to limit Iran's access to China's financial and trade networks while refraining from sanctioning major Chinese banks. In recent years, China has been recognized as the largest buyer of Iranian oil and is considered one of the main challenges for the U.S. in enforcing sanctions against Tehran.
As the expansion of the war in the Middle East has impacted energy prices and put pressure on U.S. financial markets, Basset pointed to the increase in the yield of 10-year U.S. Treasury bonds, attributing it to "global issues." Concurrently, shipping industry sources reported the suspension of oil loading at the Yanbu port in Saudi Arabia, which could have significant effects on global oil supply.
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