Former Treasury Chief: May U.S.-China Summit at Risk as Iran Blockade Escalates
Paulson said a May U.S.-China meeting could be canceled if Iran war resumes and condemned a U.S. naval blockade on Iranian ports. He noted letters to banks in Oman, the UAE and China over illicit Iran dealings and warned a “trust deficit” risks “economic disruption.”
1. U.S.-China Summit Threatened
Hank Paulson warned that if Iran conflict reignites after the current ceasefire, the planned May meeting between President Trump and Xi Jinping could be called off. He highlighted China’s objections to a U.S. naval blockade on Iranian ports as a key obstacle.
2. Bank Notices Over Iran Dealings
The Treasury Department sent letters to banks in Oman, the UAE and China notifying them of scrutiny for illicit activities involving Iran. Paulson indicated this move underscores the U.S. commitment to enforcing sanctions and raises concerns about financial system stability.
3. Trust Deficit and Market Implications
Paulson described a “huge trust deficit” in U.S.-China ties, warning that deep economic integration now carries risks of “mutually assured economic disruption.” He suggested that absent clear guardrails, competition could slip into destabilizing trade conflicts with broad market repercussions.