US Imposes Sanctions On China-based Oil Refinery, 40 Shippers Over Iranian Oil Trade

Washington: The Trump administration has imposed economic sanctions on a major oil refinery in China and about 40 shipping companies and tankers involved in transporting Iranian oil, part of the Republican administration's broader campaign to completely cut off Iran's major source of revenue.

What did the Trump administration do?

President Donald Trump's administration, the Treasury Department, on Friday announced new sanctions on a major China-based oil refinery and roughly 40 shipping companies and tankers involved in transporting Iranian oil.

This is also a part of his Republican administration’s overall ramped-up campaign to cut off Iran’s key source of revenue.

What about Strait of Hormuz?

The US this month imposed a blockade on the Strait of Hormuz, a vital waterway in the Persian Gulf that is crucial for global energy supplies. These sanctions come just weeks before President Donald Trump and China's Xi Jinping are scheduled to meet in China.

What is involved in sanctions?

The sanctions announced on Friday also include Hengli Petrochemical's facility in the port city of Dalian, which, with a capacity to process about 400,000 barrels of crude oil per day, is one of China's largest independent refineries.

The US Treasury Department said that  Hengli has been receiving crude oil shipments from Iran since 2023 and generates billions of dollars in revenue for the Iranian military.

The anti-nuclear Iran organization United Against Nuclear Iran said in February 2025 that Hengli is one of dozens of Chinese buyers of oil from Iran.

What did the US Treasury Secretary say?

Treasury Secretary Scott Bessant said his agency would continue to disrupt the network of ships, middlemen and buyers used by Iran to transport its oil to global markets.

Earlier this month, the US Treasury Department sent letters to financial institutions in China, Hong Kong, the United Arab Emirates and Oman threatening to ban them from doing business with Iran, accusing these countries of allowing Iranian illicit activities to operate through their financial institutions.