“Funding Terrorism”: U.S. Treasury Secretary Scott Bessent accused China of funding terrorism. “China has been buying 90 percent of their energy, so they are funding the largest state sponsor of terrorism,” he stated. He has characterized “Project Freedom,” a U.S. project to escort vessels that are passing through the Strait of Hormuz, as a “humanitarian effort” crucial for global supply chains.
Speaking to Fox News, Bessent revealed that several “vulnerable” nations urged the U.S. to intervene during last month’s World Bank Spring Meetings. He emphasized that the mission transcends military strategy, impacting the daily lives of over a billion people in India who rely on Liquified Petroleum Gas (LPG) for cooking.
“This is a humanitarian effort… it’s also fertilizer, it’s food transport, it’s LPG,” Bessent stated, linking the maritime operation directly to international stability and basic human needs.
“Funding Terrorism”: The Financial Constraint
The Treasury Secretary took a hard line against the Iranian government, claiming their economy is in “freefall” and their military capabilities are largely “propaganda.” He called the Iranian Navy as a “band of pirates” attempting to disrupt international commerce.
Bessent also directed sharp criticism toward Beijing, alleging that China is effectively financing regional instability.
“Iran is the largest state sponsor of terrorism, and China has been buying 90 percent of their energy, so they are funding the largest state sponsor of terrorism,” Bessent alleged.
Despite these accusations, the U.S. is urging China to pave their way toward diplomacy. With a meeting between President Donald Trump and President Xi Jinping scheduled for next week, Washington is calling on Beijing to join the international effort to convince Iran to reopen the strategic waterway.
Energy Market Outlook
The blockade has resulted in a global shortfall of approximately 10 million barrels of oil per day. However, Bessent expressed confidence that supply would soon stabilize as dozens of tankers begin moving under U.S. protection, bolstered by record American production and increased output from OPEC members and the UAE.
The situation remains vulnerable, however, following the recent Iranian strike on a Fujairah oil facility that injured three Indian nationals, the first such attack on a U.S. ally since the April ceasefire.
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