00:00Chinese banks have often been talked about being targeted, but we don't see any of those institutions targeted here.
00:09Is that something that is coming in this campaign, or is the very delicate trade truce with China
00:17something that could prohibit you from going that far and taking that very big step?
00:23We want to make clear here today that no one is above the reach of U.S. sanctions.
00:30The President is making phone calls to world leaders with specific requests to cease their interactions with the regime.
00:39We are already seeing results.
00:41Over the weekend, comments from Iranian leadership clearly acknowledge the effect of this campaign,
00:48and nations that facilitate any interactions with the regime should quickly heed our message.
00:56Those who stand with the United States will reap the rewards of our partnership.
01:01Those who tether themselves to the Iranian regime should expect to share in the isolation of a withering regime.
01:09Teams from Treasury, State, and the U.S. military are now meeting with their global counterparts to tell them that
01:18the United States expects action.
01:21Every country has a defined timeline to shut down activities we have identified.
01:27If they do not take action, we will do so unilaterally through Treasury authorities.
01:32One of the most powerful tools you have at your disposal is the ability to impose secondary sanctions on banks
01:40and financial institutions that facilitate transactions for Iran.
01:46Chinese banks have often been talked about being targeted, but we don't see any of those institutions targeted here.
01:55Is that something that is coming in this campaign, or is the very delicate trade truce with China something that
02:05could prohibit you from going that far
02:08and taking that very big step?
02:10We want to make clear here today that no one is above the reach of U.S. sanctions.
02:16That if they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they
02:28will be targeted.
02:30We find that the best way to engage with countries is through quiet diplomacy,
02:37and we are level-setting with every country to tell them our expectations.
02:43We know who they are, they know who they are, so when the hammer of U.S. Treasury actions falls
02:52upon them,
02:53they will have no one to blame but themselves.
02:55What specific secondary sanctions or penalties is Treasury prepared to levy against Chinese banks and shipping firms if they do
03:03not comply?
03:05And then secondly, as you look to take these unprecedented sanctions,
03:08you've also said that as the Iran conflict fades and oil prices recede, that will help bring down long-term
03:16bond yields.
03:17In the meantime, you have mentioned your toolkit,
03:20and I'm curious if you are looking at reducing auction sizes for longer-term dated Treasury debt going forward
03:26and what other actions you may consider from that toolkit?
03:29Yeah, well, why don't we work backwards?
03:31We issued the quarterly refunding announcement two and a half weeks ago.
03:37We are going to continue with our regular program of auctions,
03:42so you will be hearing from us again at the beginning of next quarter.
03:48In terms of, as I said, every country, every entity,
03:53every entity should know that they should be prepared to face U.S. sanctions and no one is above this.
04:03We are going to hold everyone accountable and this is economic asphyxiation of this regime
04:12and, Jennifer, as I said, no one should test our resolve.
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