US sanctions Chinese refinery over major Iranian oil purchases
Washington targets Hengli Petrochemical and Iran-linked shadow fleet vessels as Trump increases pressure on Tehran during war talks
The United States on Friday imposed sanctions on a Chinese oil refinery accused of purchasing large volumes of Iranian crude, as Washington steps up pressure on Tehran during the nearly two-month-old US-Israel conflict with Iran.
The US Treasury Department said it had targeted Hengli Petrochemical (Dalian) Refinery Co Ltd, describing the company as one of Iran’s major crude oil customers. The refinery has bought billions of dollars’ worth of Iranian oil products and has received Iranian oil cargoes since at least 2023, according to the Treasury.
The measures also covered around 40 shipping companies and vessels allegedly operating as part of Iran’s “shadow fleet”. Washington said the network serves as a financial lifeline for the Iranian government by transporting Iranian oil, liquefied petroleum gas and other petroleum and petrochemical products to foreign markets.
Reuters reported that the sanctions are part of a broader effort by President Donald Trump’s administration to restrict Iran’s oil exports and reduce revenue that Washington says supports Iran’s armed forces.
The move comes as Trump increases pressure not only on Iran, but also on countries and companies maintaining close commercial links with Tehran, while he faces the challenge of negotiating a deal to end the war.
China, the world’s largest buyer of Iranian oil, has opposed what it calls illegal unilateral sanctions. The latest US action is likely to add tension ahead of Trump’s planned visit to China in mid-May, when he is expected to meet Chinese President Xi Jinping.
