Washington, D.C., United States — April 25, 2026
The United States has imposed sweeping new sanctions targeting a major Chinese refinery and nearly 40 companies linked to Iran’s oil trade, intensifying efforts to curb Tehran’s energy revenues amid rising geopolitical tensions.
The move, announced by the US Department of the Treasury, is part of a broader strategy to restrict Iran’s ability to finance its activities through crude oil exports.
Sanctions Target China-Based Refinery and Shipping Network
Under the latest measures, a China-based unit of Hengli Petrochemical—located near the port city of Dalian—has been sanctioned for allegedly processing Iranian crude oil.
US officials said the refinery has received shipments of Iranian oil since 2023 and generated hundreds of millions of dollars in revenue linked to Iran’s military operations.
In addition, approximately 40 shipping firms and oil tankers involved in transporting Iranian crude have also been blacklisted, effectively cutting them off from the US financial system.
Trump Administration Expands Pressure Campaign
The sanctions align with warnings from US President Donald Trump that countries and companies engaging in trade with Iran could face penalties.
Officials say the objective is to reduce Iran’s oil export income, a key source of funding for its economy.
“These actions are designed to disrupt the networks that Iran relies on to move its oil into global markets,” a senior Treasury official said.
Treasury Signals Continued Crackdown
US Treasury Secretary Scott Bessent stated that Washington will continue targeting vessels, intermediaries, and buyers involved in Iran’s oil supply chain.
Earlier this month, the Treasury Department also warned financial institutions in China, Hong Kong, the UAE, and Oman of potential secondary sanctions if they continue facilitating trade with Iran.
China Remains Iran’s Largest Oil Buyer
China continues to be the largest importer of Iranian crude, accounting for an estimated 80–90% of exports prior to recent disruptions.
Much of this oil is transported through complex shipping networks designed to obscure its origin, often being relabeled as shipments from other countries such as Malaysia.
Independent refiners—commonly referred to as “teapot refineries”—have historically played a key role in purchasing Iranian oil.
Timing Amid Global Energy Strains
The sanctions come at a sensitive time for global energy markets, with tensions in the Persian Gulf region affecting oil and gas supplies and driving price volatility.
Recent developments, including disruptions around the Strait of Hormuz, have further heightened concerns about supply stability.
China Pushes Back on US Sanctions
Beijing has previously criticized US sanctions, arguing they undermine international trade norms and harm legitimate economic activities.
A spokesperson for the Chinese embassy in Washington recently said such measures violate the rights of Chinese companies and disrupt global commerce.
