U.S. Treasury Secretary Scott Bessent said China has cut its imports of Iranian crude by about 40% in recent months, a move he linked to sanctions on privately owned teapot refineries and China’s large strategic petroleum reserve. He argued the decline reduces Tehran’s oil revenue and puts direct economic pressure on the Iranian government. In interviews with Fox Business Network, Bessent attributed the drop to sanctions enforcement and China drawing down Iranian purchases as part of broader pressure. He also condemned the practice of Chinese AI models incorporating watermarks from U.S. language models, stating the issue would be reviewed further. Independent verification of the 40% figure remains limited and official Chinese responses have been minimal or absent. The remarks come as the United States continues to tighten sanctions on Iran’s energy sector and monitor potential implications for global oil markets.