Washington, April 25: The United States has imposed sanctions on a refinery located in China and several vessels linked to Iran’s oil trade. This move aims to increase pressure on Iran’s oil revenue.
The Treasury Department announced that its Office of Foreign Assets Control has targeted Hengli Petrochemical (Dalian) Refinery Company Limited. According to the department, this company is one of the largest buyers of crude oil and petroleum products from Iran.
Treasury Secretary Scott Basset stated, “Economic sanctions are tightening the financial grip on the Iranian regime, curbing its aggression in the Middle East, and helping to contain its nuclear ambitions.”
This action also affects approximately 40 shipping companies and vessels considered part of Iran’s so-called “shadow fleet.” The U.S. claims these ships transport oil and petrochemical products worldwide, generating revenue for the Iranian government.
Basset further noted that under directives from Donald Trump, the U.S. will continue to take action against those vessels, intermediaries, and buyers that assist in delivering Iranian oil to global markets. He warned that anyone involved in this activity could face U.S. sanctions.
Treasury officials revealed that independent Chinese refineries, known as “teapots,” purchase most of Iran’s crude oil. Hengli is the second-largest company in this sector, having bought billions of dollars worth of oil from Iran.
The statement indicated that Hengli has received shipments through Sepah Energy Jahan Nama Pars Company, generating “millions of dollars in revenue for the Iranian military.”
Additionally, the U.S. has sanctioned 19 more vessels accused of transporting Iranian crude oil, LPG, and other petrochemical products to various countries. These ships were operating under flags from Panama, Hong Kong, and Barbados.
Some vessels delivered Iranian oil to China, while others transported goods to the United Arab Emirates and Bangladesh. According to the U.S. Treasury Department, these ships often transferred oil at sea from one vessel to another to conceal the oil’s true source.
This action was taken under Executive Order 13902, which targets Iran’s petroleum and petrochemical sectors. It is part of a larger campaign to exert economic pressure on Tehran’s oil exports and financial networks. The Treasury Department reported that since February 2025, it has imposed sanctions on over 1,000 individuals, entities, vessels, and aircraft linked to Iran.
Under U.S. law, assets of those sanctioned within the U.S. are frozen. Generally, transactions with them are prohibited for U.S. citizens. Additionally, foreign companies that assist in such activities may also face penalties.
The Treasury Department has warned that violations could result in civil or criminal action. Furthermore, banks and other institutions involved in such transactions may also fall under the scope of sanctions.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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