This picture taken on March 26, 2026 shows an oil tanker unloading crude oil at a port in Yantai, in China's eastern Shandong province. CN-STR | Afp | Getty Images The U.S. Treasury warned financial institutions Tuesday that they could face sanctions if they engage in dealings with Chinese refineries that process Iranian oil. The Treasury urged financial institutions in a statement to avoid facilitating transactions involving independent refineries, known as "teapots," that import Iranian oil, as such transactions may expose them to sanctions. China purchases approximately 90% of Iran's oil exports, the Treasury noted, with teapot refineries accounting for the majority of these imports. "This revenue ultimately benefits the Iranian regime, its weapons programs, and its military. Some Chinese teapot refineries have used the U.S. financial system to conduct dollar-denominated transactions and procure U.S. goods," the Treasury added.…