- The US imposed new sanctions on a Chinese
- Dozens of vessels and multiple shipping firms linked to Iran’s
- The move comes just before fresh US-Iran diplomatic talks, signaling heightened tensi
The Trump administration on Friday announced fresh sanctions against a major independent Chinese "teapot" refinery for allegedly purchasing billions of dollars' worth of Iranian oil.
The US Treasury Department identified Hengli Petrochemical (Dalian) Refinery as a primary target, describing it as one of Iran's most significant customers for crude oil and petroleum products. This escalation comes just as Washington and Tehran prepare for a critical round of diplomatic negotiations over the weekend.
The Treasury's Office of Foreign Assets Control (OFAC) expanded its reach to target the logistical backbone of Iran's oil exports. Sanctions were imposed on 40 shipping companies alleged to be involved in illicit trade. Dozens of vessels are operating as part of what officials call Iran's "shadow fleet."
In a statement issued by the Chinese Embassy in Washington, officials demanded that normal commercial exchanges remain undisturbed and accused the US of using economic measures as a geopolitical weapon.
"We call on the US to stop politicizing trade and sci-tech issues and using them as a weapon and a tool, and stop abusing various kinds of sanctions to hit Chinese companies," the spokesperson said.
The latest US sanctions, which freeze American-based assets and prohibit trade with designated entities, are successfully deterring several large independent refiners from sourcing Iranian crude, yet China continues to serve as Tehran's primary economic lifeline.
According to 2025 data from analytics firm Kpler, China currently accounts for over 80% of all Iranian oil exports, highlighting a significant rift in global trade dynamics as Washington attempts to tighten its squeeze on the "shadow fleet" and independent "teapot" refineries.
The expansion of these penalties follows a precedent set last year when the Trump administration blacklisted several other "teapots," including Hebei Xinhai Chemical Group, Shandong Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.
Those measures successfully disrupted operations for the targeted refiners, forcing them to navigate significant logistical hurdles such as difficulties in securing crude deliveries and the necessity of rebranding refined products under different names to bypass trade restrictions.
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