Xi Retaliation Fear Grips US? Trump Put On Spot Over China Bank Sanctions, Gives Shock Reply

US President Donald Trump has hinted at a major escalation against China, suggesting his administration could impose sanctions on Chinese banks over their financial links to Iran. The warning comes as Washington intensifies its economic pressure campaign against Tehran. US Treasury Secretary Scott Bessent has announced that the United States is stepping up efforts to "collapse" the Iranian government through sanctions and other economic measures. China remains Iran's biggest trading partner, particularly in the oil sector, while Chinese banks continue to facilitate payments connected to Iranian oil and other bilateral trade. Any move against Chinese financial institutions could dramatically widen the confrontation—from a US-Iran economic battle into a major US-China showdown.